Stock price history plays a key role in analytical tools that provide trends for stock trading. A person who is going to be an active trader will want to learn about the different tools and systems that use this history in order to understand how certain systems, methods and strategies are used in successful trading.
Trends, or price histories, for industries and companies can go back up to twenty years. When several companies are compared, it is possible to find both company trends and industry trends that make selecting stocks for trading much easier.
These long term trends show rises and falls that occur over the course of nine to ten years. The price of stock that is lowest is called the floor or support price. The highest price of the stock is called the ceiling or resistance for the company.
Between the long term trends are intermediate trends. These trends normally show major gains and losses that resulted from changes in the industry, change in leadership, or other significant events. Within these trends are the short term trends that occur as a result of immediate events that are happening. Historically, these combined trends are important because they show how the company or industry reacted and how fast they were about to rebound from a significant loss.
Successful traders use several tools to analyst trends simultaneously. These tools are adjusted to meet the specifications of the industries they are trending. When analyzed properly trends can provide information that will increase the gains a person makes from their investments and give a person important information.
Learning how to use the stock price history, trending, and analytical tools correctly will result in much more accurate predictions on change in direction. An individual will be able to make plans for stop-loss orders and limit orders based on the historic data that reveals the floor and ceiling of a stock.
Trends, or price histories, for industries and companies can go back up to twenty years. When several companies are compared, it is possible to find both company trends and industry trends that make selecting stocks for trading much easier.
These long term trends show rises and falls that occur over the course of nine to ten years. The price of stock that is lowest is called the floor or support price. The highest price of the stock is called the ceiling or resistance for the company.
Between the long term trends are intermediate trends. These trends normally show major gains and losses that resulted from changes in the industry, change in leadership, or other significant events. Within these trends are the short term trends that occur as a result of immediate events that are happening. Historically, these combined trends are important because they show how the company or industry reacted and how fast they were about to rebound from a significant loss.
Successful traders use several tools to analyst trends simultaneously. These tools are adjusted to meet the specifications of the industries they are trending. When analyzed properly trends can provide information that will increase the gains a person makes from their investments and give a person important information.
Learning how to use the stock price history, trending, and analytical tools correctly will result in much more accurate predictions on change in direction. An individual will be able to make plans for stop-loss orders and limit orders based on the historic data that reveals the floor and ceiling of a stock.
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