Thursday, November 1, 2007

Stock chart technical analysis : Candle Stick

Tonight, I want to share some of my recent learning on stock technical analysis. Basically technical analysis is more for short term trade. It doesn't pay as much attention on company's fundamental, earning, sales growth, debt level, etc. Instead, it focus on the price movement, the volume, the trend. Understand the technical analysis can potentially help you to decide the entry and exit signal and increase your chance of winning. The above chart is the first step to understand technical: Candlestick. It shows the open, close, high and low price of the stock you're interested every trading day. You can view the price 's past performance using candle stick in the stock chart. Check out an example here (link) There are many analysis and price pattern evolve around candle stick. I will take next few nights to demonstrate a couple of useful and powerful signal to tell investor the entry and exit point of a stock.

1 comment:

Anonymous said...

ok, it makes sense, but what is the point of the candle stick? does it only show the increase ,decrease or more?