Looking at a stock chart for the first time can feel overwhelming all those lines, numbers, and colors. But once you understand the basics, it’s actually pretty simple.
Here’s a quick guide to help you out:
1. What’s a Stock Chart?
It shows how a stock’s price moves over time — like a graph of its ups and downs.
2. Choose the Time Frame
You can view the chart for 1 day, 1 week, 1 month, etc.
Short-term = good for trading
Long-term = better for investing
3. Line vs Candlestick Charts
Line chart = simple price movement
Candlestick chart = shows open, close, high, and low
Green = price went up
Red = price went down
4.Spot the Trend
Look if the stock is going up (uptrend), down (downtrend), or sideways.
This helps you know the stock’s overall direction.
5. Volume Bars
At the bottom, you’ll see bars showing how many shares were traded.
More volume = more interest.
Final Tip
Don’t overthink it. Practice by looking at charts of popular companies in your trading app. The more you do, the more confident you’ll get.