Stock index charts will help you
to make more profitable trades
Use free stock market charts or stock market charting software for best results
Stock index charts are very useful tool that help to make more profitable trades. A stock market trader or investor should put regular analysis of stock market price chart into his own stock market trading and investing business plan that describes all his stock market trading strategies or his basics of how to invest in stock market.The analysis of stock market price chart of important indexes is good not only for US stock market traders that will analyze SP500 index, nasdaq 100 index or russell 2000 index. This analysis could be performed also using index of japan stock market or shanghai stock market or with any other stock market indexes. You can also easily use index ETFs tradable on US stock markets to analyze situation on almost every stock market around the world.
Main aim of stock market price chart analysis is stock market trend
It is always hard to trade against trend. Stock index charts show state of main stock market indexes. You can see general thinking of investors about stock markets. Do they want to buy and holding market up ? Or are they selling and pushing stock price charts down.I do not like to trade against strong trend. I prefer to trade in the same direction as markets go. It is too risky to hold long positions when stock market history price chart shows weakness and is dropping hard. I monitor two parts of US stock markets. The technology market - Nasdaq and broad US market - S&P 500 index. It helps me to identify also what part of market is more strong or more weak. It is one of my core know how for trading - usage of
relative strength
analysis. I use my
stock analysis software
for stock chart analysis, but you can use also any free stock market charts available on the Internet. I.e. you can use yahoo stock charts or
FinViz - best free stock chart online site
I can recommend.
Simple stock market trend analysis secret
Stock market trend is not complicated issue. You need only good and readable stock market price chart of some index you want to analyze. Any good stock market charting software or best free stock chart online site should provide you basic tool for stock market trend analysis -
moving averages.
My trend analysis is based on position of price to main moving averages I have placed on my candlestick stock charts. You have to answer question: Is price under moving averages or above averages ? I use 50day EMA and 200 day SMA to identify global situation. Price above 50EMA allows thinking about long trades. Here is bullish situation example:
200 day SMA is adding another point. When the price is above 50day EMA and 200 day SMA then situation is strongly bullish and I like to trade long side aggressively. When price is under 200SMA and 50EMA then I prefer to be short seller.
As you can see on the stock index charts above the situation can change very quickly.
Index ETF funds for stock market index analysis
There is also possible to use alternative way for analysis of stock market price charts of major indexes. These stock market indexes are now tracked by some
index exchange traded funds.
So it is possible to analyze any index that is now represented by index etf shares.
Here you can see nasdaq 100 index stock market price chart produced by my stock market charting software
AmiBroker.
These index exchange traded funds are available almost in every good one site with free stock charts and this simple analysis can be done using them too. I personally recommend to use
FinViz
as best free stock chart source for this basic analysis.
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