Investors look closely at trends to make a judgment about the current and future direction of an asset. It is often easier to determine a trend by looking at a chart of an assets prices over a period of time, along with the total volume generated during the trading day in relation to the closing price for the day. The first step in applying technical analysis is learning to read and understand a chart.
A trader needs to know what a chart is before attempting to dissect the information presented. In summary, a chart is a depiction of price that happen between financial instruments that are plotted and illustrated on a graph. The ability to read charts is part and parcel of trading, as it allows you not only to keep track of your current trades but helps to detect a developing trend line for your future trades.
Barry Norman The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.