Posted by forex at 8:16 AM
Read our previous post
1. Go to Yahoo! Finance. Yahoo! Finance is the top rated investment research site as ranked by Alexa.com. Enter the ticker symbol for the stock or company you would like to track in the quote box. If you don't know the ticker symbol, enter the company and Yahoo! will provide suggestions for you. Click Get Quotes once you've entered the symbol.
2. Scroll down the right hand pane and click 'Technical Analysis' under the 'Charts' menu.
3. Chart the historical prices of the stock over three months clicking on '3m' next to 'Range.' Try to identify a trend. A trend is when a stock price continues to move up or down over a certain period of time. Sometimes a trend can also move sideways or remain flat. The trend is among the most common technical indicators used. Try spotting a trend over six months (6m), 1 year (1y) and 2 years (2y).
4. Look for signs of support or resistance. Support and resistance levels are technical indicators that provide clues about where the next breakout will occur. A breakout is a point where a stock breaks through a certain threshold where prices have been 'sticky.' Look for a bottom in prices (support); and a top in prices (resistance).
5. Analyze volume by clicking on 'Volume' next to 'Overlays.' Volume is the number of trades that have occurred for a stock. It provides investors with clues on the strength of the trend or price movement.
6. Analyze moving averages. A moving average is the average price of a security over a certain amount of time. You can look up a 5-, 10-, 20-, 50-, and 100-day moving average by selecting this next to 'Moving Avg' on the chart. The 100-day moving average will be smoother and less volatile when compared to the 5-day moving average.