Stock Charts are tables that have compiled a group of data to show the performance of Stock in the market. They show the percentage change, last sale and share volume of stock from a specific company.
A desirable Stock Chart should provide a timely or live information. In addition to that it should contain past data in intervals such as last 7 days, 3 months, and half an year ago depending with the age of the company’s stock.
Investors require this information to follow the trends and make judgement on the possible future direction of the stock. Looking at the pattern in relation to total volume and the closing price of the day, it is easier to make a wise decision.
While using Stock Chart, there is use of terms such as:
Chart Range which refers to the period covered by the chart with the shortest being a day and the longest being 10 years.
Chart Elements, meaning the elements available in the chart.The user check for Chart elements to determine standard price or volume and moving averages.
Volume is another important word which is used to mean the closing total price represented graphically for a single day.