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Price Charts

• Visual representation of stock price movements over time.

• Common types:

  • Line Chart - Simple and clear, showing closing prices.

  • Bar Chart - Displays open, high, low, and close (OHLC) prices.

  • Candlestick Chart - Provides the same information as bar charts, but with color-coded visuals to indicate price direction.

Support and Resistance

• Support: A price level where demand is strong enough to prevent further decline.

• Resistance: A price level where selling pressure prevents further price increase.

Trendlines

• Straight lines drawn on a chart to connect significant price points.

• Uptrend: Higher highs and higher lows.

• Downtrend: Lower highs and lower lows.

Chart Patterns
Patterns help traders predict future price direction:

• Continuation Patterns: Indicate a pause before the previous trend resumes (e.g., Flags, Pennants).

• Reversal Patterns: Suggest a change in trend (e.g., Head and Shoulders, Double Top/Bottom).