Basic Tips on Trading Stock Charts

The Basics of Stock Charts for Dummies

Take a look at this excellent video on stock charts by the Old School Chartist. It is aimed at the very beginners amongst us, so if this is not you  then you may wish to skip it. In the video he gives a very good and easily understood explanation of the wedge pattern and the difference between logarithmic charts and arithmetic charts and why it is very important to use logarithmic charts when looking at stocks. Any charting package (whether free or paid for) will allow you to switch between the two diferent charting methods just by clicking on a button.
In the video he mentions a book about charting which he recommends by Robert Edwards and John Magee Technical Analysis of Stock Trends
it costs around $60 but is well worth it, alternatively there is a cheaper charting book on the right-hand side of this page.

If you are more of a long-term investor rather than a short-term  trader then you might want to take a look at what stocks Warren Buffett has been buying - Warren Buffett's Latest Stock Buys

For more about charting see - How to Trade Stocks Online

Technical Analysis of Stock Trends

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