You raised an interesting issue this week… Are stock charts really required to be a successful trader… or are they just a waste of your time?
Here's the deal…
While there are some charts out there that look fancy, they don't actually provide any useful information that you can use to time your trades.
But there are others that do – and that are crucial in timing your entries and exits.
OHLC charts track the open, high, low, and close of each trading day. This is the most important type of chart out there because it reveals the patterns that identify trends, such as reversals and inversions.
Candlestick charts track the open, high, low, close, and show the range between the open and closing prices as well as the highs and lows of the day. Like OHLC charts, candlestick charts can help you identify trends that are forming or reversing.
The last hour of the trading day is the most important one because it gives you clear clues as to where a stock (and the overall market) is heading.
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The post Two Stock Charts You Need Before Placing Your Next Trade appeared first on Power Profit Trades.
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.