Learning Penny Stock Quotes Is The Golden Key
So you may wondering about Penny Stock Market Quotes. In volatile stock markets, investing can be scary for a novice investor. If you want to learn more about penny stock trading, you will have to go through the basics – like reading stock market quotes and trading terminologies. A deep understanding of the basic skills will make it easier for you to understand the more complex issues and intricacies of doing penny stock trading.The article would explain in simple terms all that there is to know about reading stock market charts.
Cyberspace is full of free stock market charts that can help you understand the movements of penny stocks. You can find these sites at: Google Finance, Yahoo Finance, Trading View, Stock Charts and others. Accessing the sites are quite simple and there are no registration requirements for you to view them. These stock charts will help you understand the movements of the stocks at a certain time and help you analyze past trends – so you can reasonably predict its possible outcome in the future
The OHLC chart is a securities chart that is often used by the technical analyst groups to do analysis of stock movements and spot specific trends particularly on the short term. OHLC stands for – Open, High, Low, and Close chart. There are two types of OHLC chart – plain vanilla and candlestick chart. The following data can be gathered from these charts:
-Price movement (highest and lowest) of the financial instrument over a time period – months, days, hours, and minutes
– Tick marks indicating opening and closing prices for a certain time period
Understanding the Stock Charts
Main Indicators Used For Penny Stock Market Quotes
1. The Volume Bar
The volume of stock traded for that particular day is found at the bottom portion of the chart. These are two vertical lines that are found one on top of the other. The line that you can see at the bottom portion of the chart normally corresponds to the one above it. The bar that is located at the lower portion represents the volume of stocks that is traded at a certain point.
2. The High and Low Price Stock Value Indicator
The vertical bar found on top of the volume bar represents the low and high price values for the period. The top portion represents the high value; and the bottom, the low value;
3. The Open and Close Marker
Some charts may be presented differently. You may find small and stout bars with a wisp of thin line inside the bars – which is oftentimes called a wick or a tail. This is how its name – candlestick was derived. Reading the bars would indicate that the: wick – represent the high and low values, and ; fat line – the small bar that covers the wick, represent the open and close values.
To highlight the difference between the close and open values, the bars are shaded differently. If the bars are shaded either black or red, the close was lower that the open value. The top of the bar represents the open, and the bottom portion marks the close. If the body was shaded either green or white, the close was higher than the open values. The top portion shows the closing point and the bottom portion is the open. The shadows or thin lines that runs through above and below the bars, correspond to the range of values for the day’s high and low prices.
If a situation occurs where the stock traded for the day opened and closed at the same price, there will be no bars or body to show since there was no price movement. There are different types of stock charts that you can choose from when you do penny trading. The choices may include either a line graph or a bar graph. Understanding it may take some time, but once you understand the basic logic behind it, you will be in a better position to use the trends and data that they provide.
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Learning about How To Read Penny Stock Market Quotes can bring great rewards in percuit of wealth in the Penny Stock Market.