Posted by forex at 5:58 AM
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1. Go to Yahoo! Finance. Yahoo! Finance is the most popular investment research site on the web, according to Alexa.com.
2. Input the ticker symbol for the stock or security you are interested in. Click 'Get Quotes.' Scroll down the left pane and click 'Basic Tech Analysis' under the section Charts.
3. Select a range to review. Next to the word range, just above the chart, you will find the following options: 1d (one day), 5d (five day), 3m (three month), 6m (six month), 1y ( one year), 2y (two year), and 5y (five year). Day traders are more interested in daily or weekly trends whereas long-term traders are more interested in one-, two- and five- year trends.
4. Look for bottoms (support) and tops (resistance) in the chart. Over time, the line will start to go up and down. Charts can only trend in three directions: up, down, or sideways. Identify which way your security is trading (trending). Now choose a different time range to see if you identify the same trend.
5. Analyze the trend. Once you've identified what kind of trend it is, determine how long it takes (in general) for the trend to change. Some securities change direction with the market, while others change direction every quarter regardless of market dynamics.