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We often see at various business news channels the graph of stock market for a particular day. At what levels that stock market was opened, what are the highest levels, the lowest levels and the levels at which the stock market gets closed, is depicted by such charts. Such charts that provide the trend of the stock market are called as the stock market chart. Thus, it can be said that the stock market chart is a graphical representation, regular or 3-D, of the moves made by the stock market.
By means of these charts, a person is easily able to know the sideways movements and the ups and highs of the stock market. It is very important to note here that the stock market chart can pertain to the movements made by it in a single day or it can pertain to some period. This period may consist of few months or years. For example, if a person wishes to get the stock market chart pertaining to Black Thursday, the day when the U.S stock market crashed in the year 1929, he has to get the stock market chart from the period 1920-1933. This is because it is during this period that all the highs and lows were achieved by Dow Jones.
Utillity:
Stock market charts are considered as important tools for making investment in the stock market. This is because until a person predicts the move of any stock or stock index, he cannot take decision and the stock market chart is the perfect way to know the moves. All the big investors that have made huge money in the stock market are using the stock market chart from sure. Doesnt matter if the information is provided by the stock market chart in line and bar graph or pie chart, but a person must be able to decipher the highs and lows of the stock market chart. The stock market charts are used mostly for providing the graphical representation of the trends pertaining to the stock market index or a mutual fund or a particular stock. The use of these charts depends upon the motive of a person.
For example, if a person is following the trends of a particular stock, he has to go for the stock market chart of that particular stock and when the stock achieves the highest or lowest levels as per the trend, a person can easily assume his position accordingly. Volatility has been the biggest threat to all the traders and this is also the reason why stock market is quite uncertain. Of course, it is not easy to make money in this market, but with the help of stock market chart, a person can understand the moves of a particular stock or stock index, on the basis of past performance, which can be easily had from the stock market chart of that period. Most of us are utilizing the services of a stock broker or a stock broking firm and we get recommendations also. From where do these sources get that information? It is by combination of technical and fundamental analysis of stock and by means of stock market chart. New tools are being included continuously in the stock market chart to help the trader in knowing the moves of a particular stock. The common tools of the stock market are called as OHLC.
What is OHLC
OHLC stands for the Opening price, Highest, Lowest and the Closing prices. Most of the stock market charts provide information in OHLC way only. By this tool, a person is able to know the price levels at which a particular stock opens in the stock market, the highest levels gained by the stock, the lowest levels and ultimately the price level at which the stock was closed. If carefully observed, this tool provide us the price range of the stock or the range in which the stock index has performed. For example, it any stock or stock index has opened at the levels of 150, has gone up to 220, the lowest levels achieved by it is 135 and it closes ultimately at levels of 152, it can be said that the particular stock or stock index has traded between the range of 220-135. By means of this information, a person can easily assume his position for the next few days in the stock market.
Other aspects:
Getting stock market chart is very easy as there are many paid and free sources for these charts. Most of the online brokerage house allows their subscribers to get the stock market chart free. Apart from this, there are also some online sources that allow a person to get the stock market chart for a nominal fee. With technology improving continuously, now it has been made possible to get the customized stock market charts, as most of online sources are providing. By means of these customized stock market charts, trader and investors get high understandability of the stock moves and data is remembered for a good period of time.
It is advised here to all those people that wish to make trades in the stock market that they should always take into consideration the latest news regarding any company or economy or political situation in the country. This is because the stock market is greatly driven by sentiments and once these are in place, the stock market chart would not help a person out. The stock market chart of course helps a person in making decision on the basis of stock moves, but it cannot avert any sentiment. For example, if any stock is trading at its 52-week low level or say, at lower levels of the day, it does not mean that the stock market would definitely go up or that particular stock would move up, if there is any political unstableness. Many times stock markets have crashed drastically to great levels due to these factors. Thus, when the information deciphered from the stock market chart is coupled with overall economic and political scenario, it offers the best trading opportunity to a person. us, when the information deciphered from the stock market chart is coupled with overall economic and political scenario, it offers the best trading opportunity to a person.
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