Stock charting software and equivalent technical analysis
Stock charting software now makes it increasingly possible for investors to get a picture of price movements and other predictions in a concise manner. The analysis of stock charts is also known as technical analysis in most circles. The reason why technical analysis and stock charts work these days is because of the changed manner of operation of most traders. These traders usually look to the charts for guidance and do not rely on any other major source. As a result, more and more investors seek proper software solutions for the same. Spider Software Pvt Ltd is one of the leading lights in this regard with its own bouquet of software solutions tailored for greater investor efficiency and stock charting.
Stock charting software helps immensely as it provides illuminating knowledge and information for investors. Reading a stock chart is a process that you should be familiar with to maximize the software program you use. There are four key components of a stock chart, namely the identification section, volume, time frame and the axes. Identification usually comprises of the company name, symbol, stock exchange where it is primarily traded, date, change in prices throughout the course of a day, volume of trading and change in prices as compared to the previous day’s closing price.
Time Frame usually refers to the kind of time period over which price movement is charted by the software program in question. This can be edited as per requirements and you can scale up time periods to six months or even more. The stock volume essentially refers to the total stock shares that have been traded or exchanged within a particular duration or simply the scale of buying and selling that took place within the same period. This is a major factor as it lets you get an idea of the overwhelming forces working behind price movements.
The X and Y axes on any stock chart refer to the bottom part of the graph containing the time frame and the price action on the right side respectively. The past is denoted through the left side of the chart as an indicator. Charts usually come in three types, namely candlestick charts, bar charts and line charts. With the help of a capable stock charting software program, you can get your stock charts in front of you with ease! This helps you take better decisions and understand the market even better!