How to Read a Stock Chart (With a Worked Example)
What does a chart show?
X-axis: time. Y-axis: price. Line or candles: price history. Volume bars: shares traded each day.
Line vs candlestick?
Line is clean and best for long horizons. Candles show open/high/low/close — better for short-term.
What time frame?
10-year answers 'long-term winner?'. 1-year shows recent trend. 3-month shows current action.
What about volume?
Volume confirms price moves. Big moves on high volume are more meaningful than the same move on low volume.
Frequently asked questions
Are technical indicators worth it?
For long-term investing, mostly no. Master the basics first.
Why do stock splits distort old charts?
A split lowers per-share price proportionally. Most modern charts auto-adjust historical prices.
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