![]() It provides a graphical representation of a stock's closing price movement over time. Source: Seeking Alpha's Advanced Chart from AAPL Quote pageĪ line chart is the most basic of all stock charts. Investors can choose from several different chart types to gather the insights you need. Once investors understand the terms found on most stock charts, they have an easier time reading the charts and interpreting the data, trend lines, and chart patterns. In the above chart, the highest volume day in recent years was towards the end of 2020. In the example chart below, the volume, or number of shares traded, is represented by the grey bars. Typically below the stock price graph, but alongside the same x-axis, is the volume chart. To create a basic line chart, the price points are connected to form a line from left to right. Historical prices are plotted where the time scale and price intersect on a specific date. In some cases, the bottom of the y-axis will represent a price level of $0, but often that is not the case, with the lowest price level shown being a higher price point. ![]() The vertical axis (the y-axis) represents price levels. The placement of May 2021, outlined in red, would represent the beginning of the month of May 2. The above 6-month chart presents an x-axis with labels for those 6 months. The gridline and tick labels indicate specific time points. The horizontal axis (the x-axis) of a chart presents the passage of time, either in hours, days, weeks, months or years from left to right. ![]() Basic Stock Chart Featuresīasic line chart features for a stock include: Any projections for stock prices into the future are subjective interpretations, regardless of whether these projections are constructed from fundamental analysis, advanced charting analysis, or a combination of them. The chart features themselves are factual and mathematical in nature. Being able to read a stock chart can help investors understand how a stock has been performing, and possibly provide clues to the future path of its share price. ![]()
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