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How to read a stock chart

A stock chart shows how a share price has moved over time. Once you know what the lines, bars and labels mean, a chart tells you in a few seconds what would take paragraphs to describe.

The axes and the time range

The horizontal axis is time and the vertical axis is the share price. Most charts let you switch the range: one day, one month, one year, five years and so on. The same stock can look like it's crashing on a one-week chart and rising steadily on a five-year one, so always check the range first.

Line charts and candlestick charts

A line chart connects each day's closing price. It's the simplest view and the one InsiderPrint uses.

A candlestick chart shows four prices for each period: the open, the high, the low and the close. The thick body runs from open to close and the thin wicks show the high and low. A body is usually green (or hollow) when the price closed higher than it opened and red (or filled) when it closed lower.

Volume

Bars along the bottom of many charts show volume, the number of shares traded in each period. A big price move on heavy volume means many investors took part. The same move on light volume is easier to reverse.

52-week high and low

The 52-week high and low are the highest and lowest prices over the past year. They give quick context: a stock near its 52-week low has fallen a lot recently, and one near its high has done well. Neither tells you where it goes next.

Moving averages

A moving average smooths out daily noise by averaging the last N days of prices. The 50-day and 200-day moving averages are the most common. When the price is above its 200-day average, the longer-term trend is generally described as up, and below it as down.

Insider trades on a chart

On every InsiderPrint stock page, insider purchases and sales are marked as dots on the price line, so you can see whether executives bought after a fall or sold after a rise. Hover over a dot to see who traded and how much.

Open any stock's chart →

Common questions

What does a red candle mean?

A red (or filled) candle means the stock closed lower than it opened during that period. Green or hollow means it closed higher.

Which time range should I look at?

Look at more than one. A one-year chart shows the recent trend; a five-year chart shows whether that trend is part of something longer.

Can a chart predict the future?

No. Charts show what has already happened. Many investors use them for context, but past price moves don't guarantee future ones.

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Educational content, not investment advice.