Even if you are a tried and true fundamental analyst, a price chart can offer plenty of valuable information. The price chart is an easy to read historical account of a security's price movement over a period of time. Charts are much easier to read than a table of numbers. On most stock charts, volume bars are displayed at the bottom. With this historical picture, it is easy to identify the following:
- Reactions prior to and after important events.
- Past and present volatility.
- Historical volume or trading levels.
- Relative strength of a stock versus the overall market.
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