What is a Stock Chart?
Stock charts show real-time and historical market data for publicly traded company stocks. Market data comes in the form of prices, which can be displayed in various ways on stock charts. Traders, investors and others interested in the stock market analyze stock charts to identify possible trends, and attempt to predict where the price will go based on certain external information.Technical stock chart analysis is performed with the help of various tools, such as drawings and technical indicators. These tools are applied to a stock chart, and sometimes to several charts, to track possible correlations between events. Price data can also be viewed in different formats. Each stock chart can be displayed as either shaded areas, bars, lines or candles. Each stock chart type shows different information, which may be useful for different types of analysis. There are also different timeframes, such one minute, one hour, or one day, which represent the timeframe of market data that is reflected by one bar on the stock chart.
Stock chart trading is then done on the basis of technical analysis, and involves either buying some stock to sell later, or selling some stocks short in order to repurchase them later.