Basic and Advanced chart - Stock Valuations - Analysis of the Company, Investing in Stock Markets Video Lecture | Investing in Stock Markets - B Com

good morning and welcome to basic chart
reading lesson number one this course is
going to be designed with the very
beginner in mind so we're going to be
looking at a lot of terms that may be
unfamiliar to you we're going to be
looking at a lot of charts over the next
couple of weeks and the whole course is
designed so that you can build upon your
knowledge one step at a time now this
very first lesson is going to be really
super basic it's just to show you what a
basic chart looks like and how it
functions
the very first thing you're going to see
is up here is going to be your stock
symbol then you're going to have the
company name then which board it is
listed on this is listed on the Nasdaq
now this chart is from stockcharts.com
and up here we have the price label this
little guy right here it's telling you
what day of the week it is what the date
is and what time it is when you open
this chart the next thing is going to
give you is the open the high the low
and what price the stock closed at the
day before so it closed at 14 dot 16
cents it opened at 14.26 the low for the
day is 14 28 and the high that it's
traded at so far is 1450 now the bid
size is going to show you what a person
wants to pay for the stock they want to
pay 14 31 and the bid size is going to
show you how much they want they want
100 you always have to take this number
and times it by 100 then
asked sighs that's a person who's
selling the stock this is what they want
to pay they want to get 14 dollars and
31 cents for their stock and then the
size of course is going to be 2,100
okay now the price per earnings ratio
basically that tells you how effective a
company is at managing their finances
the way that you use this number is you
take the
you take the price that the stock last
traded at which is right here at 1431
you divide this number into this number
and it gives you the EPS which is in
earnings per share so basically this
stock is a very good pick if you were
going to take this one for a long-term
investment now the last right here tells
you what the last trade was and that was
200 shares and it traded at the 1431
price and then this over here okay the
volume weighted average price which is
the total number of shares that traded
hands and the average of those shares so
it would be about 1440 for the day right
now during the last trade the price rose
1.0 6% the change is actually 15 cents
right now and of course our last trade
is 14 31 and the total number of shares
that have traded hands today by 10:00
a.m. was 1 million
9950 four and that's your very basic
definitions of all of these terms here
each one can have an impact on your
trade for the day it's always a good
idea to keep your eye on what's going on
with your price labels and we will take
a look now at the basic chart setup
itself when you first open up your stock
chart you're going to see lots of little
squiggly lines here and some strange
lines here in the middle and then
something called a MACD down at the
bottom with more squiggly lines now I'm
not going to go in to what each one of
these indicators means just yet I'm
going to just explain this basic chart
setup to you
the RSI which is the relative strength
index tells us how powerful the stock is
trading right now when it crosses the 50
line it's bullish which means that
people want to buy this stock so this
stock is looking good for the day
these right here are called candles and
this shows us during each trading day
where the stock's price traded at what
it opened at and what it closed at and
we'll get to that meaning a little bit
later in the lessons as well these two
green lines here
let's around the candles are called
Bollinger Bands and the line in the
middle is the 20-day moving average for
this particular setup you can always
change that but for today we're going to
go with the basic setup we also have two
bigger moving averages now your moving
average is calculated from a certain
period of time and for the 20-day moving
average it's a ticket price over 20 days
and averages it out and that's what
creates this line here in the middle the
50-day moving average is this blue line
right here
and that again of course is the average
price over a 50 day period and then the
200-day moving average which of course
is the average of the price calculated
over 200 days this stock is obviously a
well-established stock and has a
well-established 200 game line now
all of these pretty little colors here
this is your volume and as you can see
right here this is the volume for the
very beginning of the training day and
then this right here the MACD the moving
average Convergence and divergence so
what we want to know is out of our
moving averages where they converging
and where they're diverging from the
first line this black line right here is
going to be your main line it's going to
be the bullish indicator the red line
right here is going to be your bearish
indicator and these little blue bars
right here represent the divergence and
as you can see right here we have a
cross over this stock is just going in
to a bullish crossover then once it
crosses the diversions line this stock
is really really done take off
so that is your very basic setup of a
chart and what kind of information you
can get from it and for our next lesson
we'll go deeper into looking at the
indicators and how all of these
different indicators and the information
that's displayed on this page can make
you a better trader okay
thank you have a wonderful day