Reading a Stock Chart

Stock charts visualise price movements over time. Candlestick charts show the open, high, low, and close for each period. Volume bars show how many shares were traded. Learning to read charts is the foundation of technical analysis.

Quick quiz and answers

What does a candlestick chart show?

Answer: Open, high, low, and close prices. Candlesticks show four price points: open, high, low, and close for each time period.

A green (or white) candlestick usually means:

Answer: The stock rose (close > open). Green candles indicate bullish price action — the closing price was higher than the opening.

What does high trading volume indicate?

Answer: Strong investor interest in the move. High volume on a price move validates the move — many participants agreed on that direction.

What is a "support level"?

Answer: A price floor where buying tends to emerge. Support is a price level where demand has historically been strong enough to halt declines.

Practice this with $10,000 in virtual cash in Tradecraft, free paper trading with real market data.

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Educational content only, not investment advice. Tradecraft is a simulator; no real securities are bought or sold.