So what are some of the best tips for reading stocks? The best way to read a stock is by learning to read a candle stick style chart.
If you understand how to read the candle sticks then you will be able to accurately read the stock.
There are several ways that candle sticks can help you, they give indicators showing the stock is about to reverse or they show that the stock is going to keep on going in the same direction.
Another great tips when trading stocks is learning what the channels are.
If you understand the basics of candle sticks and you can implement the channels in as well you will be able to even better read the stocks.
Channels are two lines one on top of the candle sticks and one below.
The channels show you if the stock is looking like it will reverse.
They do this by touching the lower or higher line a few times over a certain period of time.
If the price touches the lower line a few times over 1 year then it is a strong indicator that the stock is going to rise and rise fast.
And another way to read if a stock is on the rise is if it had a daily volume of xxx and a few days later it was 2 times that amount and a few days after that the amount kept rising.
This is what we call a delayed reaction to news.
If you see that the stock has been in the news and is likely to make a big announcement then the odds are it will be good.
Companies usually don't announce really bad news which makes the volume go up and up along with the price.