Price and Volume

There are many different types of stock charts: line, bar, OHLC (open-high-low-close), candlestick, mountain, point-and-figure, and
others, which are viewable in different time frames: most commonly, daily, weekly, monthly, and intraday charts. Each style and time
frame has its advantages and disadvantages, but they all reveal valuable price and volume information that you can use to make
profitable investing decisions.
There are many different types of stock charts that display various types of information, however all stock charts display price and
volume. On this stock chart, the blue and magenta colored marks represent the price history. The amount of trading history each bar
represents is based on the period of a chart. For example, on a daily stock chart, each price bar represents the prices the stock
traded during that day. On a weekly stock chart, each price bar represents the prices the stock traded during that week.
The length of each vertical bar illustrates a stocks high-low price range. The top of the bar corresponds to the highest price paid for
the stock during that period, and the bottom of the bar corresponds to the lowest price paid. The small intersecting horizontal slash
indicates the current price or where a stock closed at the end of the period. The price bar will be presented in blue if the price of the
most recent trade is equal to or greater than the previous periods last price, or magenta, if it is less than the previous periods price

close.

The vertical lines displayed at the bottom of the chart represent the number of shares traded during the specific time period of the
chart. The length of the volume bar indicates a value that corresponds to the scale at its right. The color of a volume bar is
determined by its corresponding price bar; blue if the most recent trade is equal to or greater than the previous periods last trade,
and magenta if it is less than the previous periods closing price.

Moving Averages
Moving averages are plotted on stock charts to help smooth out volatility and point out the direction a stock may be trending. It may
also help provide context for the price or volume movements during a given period as it makes it easier to spot divergences from an
established price trend.
The red line cutting through the price bars is the 50-day moving average. It represents the average price over the previous 50
trading sessions and is calculated by summing the closing price over the last 50 trading sessions and dividing by 50. The black line
is the 200-day moving average. It represents the average price over the previous 200 trading sessions and is calculated by
summing the closing price over the last 200 trading sessions and dividing by 200.

Interpreting Moving Averages

Most growth investors like to see moving averages trending up and they like to see the stocks current price continually close above
the trailing average. This is a sign the stock is on the right track to continue rising in price. Value investors, on the other hand, might
pick stocks that are currently trading below a moving average, in order to pick a stock that is trading at a discount with the hopes
the stock will quickly return to its average price.
The red line cutting through the volume bars is also a 50-day moving average, but this one is an indication of the average number of
shares traded over the last 50 trading sessions. When viewing a daily chart, this line represents a 50-day moving average volume
level. This line is derived by summing the volume of the last 50 trading days and dividing it by 50. Whether or not volume is above or
below the average for a certain period could have a significant impact on your stock chart analysis. For example, above average
volume on a daily stock chart can confirm or amplify the significance of a price move. When volume is below average, it becomes
questionable whether prices will continue in that direction.