Santa Baby The purpose of "chart reading" is to
Post# of 56324
Posted On: 05/13/2014 3:48:28 PM
Re: Santa Baby #22625
Santa Baby
The purpose of "chart reading" is to gauge probable strength of demand vs pressure of supply for a stock, at different price levels. This allows one to predict the direction in which a stock may move and where it may stop.
Here is the kicker!! The clues are provided by the history of a stock's price movements. In the market, history often repeats itself. Chart price fluctuations tend, with some consistency, to fall into a number of patterns. Each formation signifies a relationship between buying and selling pressures. Some patterns, indicate that demand is greater than supply. Others suggest that supply is greater than demand. Still others imply that the two are likely to remain in balance for some time. Remember, no system is infallible!!
The purpose of "chart reading" is to gauge probable strength of demand vs pressure of supply for a stock, at different price levels. This allows one to predict the direction in which a stock may move and where it may stop.
Here is the kicker!! The clues are provided by the history of a stock's price movements. In the market, history often repeats itself. Chart price fluctuations tend, with some consistency, to fall into a number of patterns. Each formation signifies a relationship between buying and selling pressures. Some patterns, indicate that demand is greater than supply. Others suggest that supply is greater than demand. Still others imply that the two are likely to remain in balance for some time. Remember, no system is infallible!!
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