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Basic Stock Chart Technical Analysis

Basic Stock Chart Technical Analysis

Basic Stock Chart Technical Analysis

I know plenty of investors that have their eyes gloss over when they hear terms like “head and shoulders” and “falling wedge” formations. It all has to do with the mysterious wizardry that is stock chart technical analysis. However, the basics of this analysis are pretty straightforward.

While this infographic does not go as deep, it does cover the fundamentals of support and resistance in stock charts. These two concepts are the foundation for much more complex technical analysis that will allow you to really start gauging momentum and patterns in the markets. If a stock cannot breach a certain level and seems to sell off when it nears a certain price, that is the resistance. If a stock is able to bounce off a certain level every time it is selling off, that is the stock’s support level.

For more on basic technical analysis, Investopedia has a great article covering the subject from beginning to end.

Original graphic from: Tim Sykes

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