Stock Charting - Ways & Means

[ModE98]

Use charts to follow your stocks, watch trends, and track performance? The use of charts is how I watch how my holdings are performing. They provide a graphic history from the date you start to track your stock(s) to the latest date. The daily or weekly trend over over days/months/years, depending on how you utilize them. I keep track daily via my Scottrade account utilities and have charts of the Dow, S&P indexes and my individual stock holdings. There are several sites on the internet that also provide charting services and I am sure those that use them may choose to refer to those that they utilize.

There are those that "pan" chart keeping and believe in only the following of basic fundamentals. If there are any here, they can plead their case in a later post or posts. It is true, charts do not accurately predict the future course of any stock's performance, as there are far too many variables that develop over time that will affect them. Yet, they do offer hints, based on the charting trend (subject to the vulgarities of the general market trend and economic conditions that vary over the days/months/years.)

I have begun this thread with the hope our "chartists" will chime in and offer their thoughts and methods to help the education of those new to investing, or to enhance the knowledge of we mere basic users of charts. There is advanced charting methodology that can help us all have a better understanding and get the best results.

So, let's give it a go......

[clarkrl2]

I usually use charts when I'm making a trade but don't pay too much attention to them for longer term investments. However, even for long term investments I will try to put my buy orders at what I believe are support levels. I also think charting indexes can help determine market trends and will sometimes look at longer time frames. Since I don't consider myself a chartist I won't have much to contribute but would be interested in seeing what they have to say.

[ModE98]

I do not consider myself a "chartist" either, but more of a "trend follower" to attempt to ID a very overbought (topping) or oversold (bottoming) stock for potential buy/sell signal. Of course, one must also be well aware of sector trends, current economic conditions, Fed actions that effect market conditions. It is sort of "the chart says", yet the stock may be going down much further if the economic conditions have a red flag flying.
The chart, alone, is merely an indicator of the particular stock's trend, but gives no reason for it. Better look for a reason and then put 2 and 2 together. If the answer is not 4, "Houston, we have a problem." Better seek other prospects.
Hope this makes sense, my brain sometimes feels its age, and I do not come across as clearly as in my younger days.