Charts and Indicators
In This Chapter
• Short-term traders often favor a particular type of chart
• Some charts are easier to read than others, but carry more information
• Technical indicators inform traders of major changes in price or direction
• Charts and indicators both need interpretation
Technical analysis as expressed in charts and certain indicators is one of the most common tools used by short-term traders. Charts provide a quick, graphic representation of what is happening with a stock and suggest a course of action (buy or sell). Indicators, which may show up on charts, provide the same type of information for quick decisions. Short-term traders who use technical analysis swear by it, while some buy-and-hold investors who ...