How can I learn to effectively read stock charts???

Question

Do they teach it in college, books, etc..???

Answer 1

Learn to read candlesticks.

You can find information on these on websites like investopedia.com, or from books, like Steve Nison's Beyond Candlesticks.

After you read about them, open a demo trading account, use candlestick charts, and trade away.

I wish you the best!

Jim http://jsforex.blogspot.com

Answer 2

A standard is Technical Analysis of Financial Markets by John Murphy

Answer 3

I would buy a course with some friends to spread the costs.  If you are near a large university, you could check enrolling in school as a special student possibly in the grad school.  There are on line tutorials that you could explore. I would check out Amazon.com, if you want to "window shop" for a book.

Answer 4

Don't waste your time in college or business school or finance classes. Stock chart reading is regarded by many in the 'investment' community as voodoo, really because most don't understand it, and don't realize that charts are not perfect predictors, but rather increase the odds of making the correct prediction. Charts fail, but so does fundamental analysis. However, by using charts effectively you will greatly increase your odds of making the right stock selections.

In terms of how to read them, don't buy a book, you can find any number of websites that talk about common chart patterns. Learn 4 common chart patterns, how to recognize and profit from them, and that is all you need. Keep it simple.

5 patterns to search:

cup with handle

double bottom

flat base

head and shoulders

Answer 5

You can probably find some books about it at any big library.  And I'm sure you can also buy such books at Amazon or some other bookstore.

Answer 6

If, as it appears that this is your first foray into investing, my own recommendation would be that you learn to look at company fundamentals first. (Learn it well.)

Company fundamentals provide you trading safety, charts can then help you spot opportunity and danger.

I'd also recommend looking at a lot of charts before you "study" them. Try to find the patterns first, try to look at charts(along with fundamentals) and practice trying to predict what is going to come next. When you start to have a little success, then look at some of the texts that were already mentioned, and they'll make much more sense to you.

The book I'd recommend (other than the others) is Rule #1 Investing.

Answer 7

This is not a subject that is taught in the academic world.

try http://www.decisionpoint.com/TAcourse/TA...

http://stockcharts.com/

good luck