Using Charts to Determine Trends : RushPRNews - Newswire & Global Press Release Distribution

 
Bookmark and Share

Using Charts to Determine Trends

September 30, 2013

Using Charts to Determine Trends

London, UK (rushPRnews) 09/30/13 — Even a casual observer of financial markets notices the propensity to use charts and graphs to interpret the financial results of any market or time period. Every analysis uses them as a basis to demonstrate what has happened in the past with the idea that this information can be used to help predict future trends. Despite their constant use to convey vast amounts of information, most observers get little from them except to notice a start point and an end point to determine if it was an “up” or “down” day. While this easy visual reference does do that well, if that were the only purpose a simple open and close price that is also included would be all that is needed to demonstrate an up or down for any time period.

 

Volatility

While knowing that there is more information to be derived from that in a chart, it is the complexity of many of these charts that make many would be investors shy away from their use. To understand financial charting, one must also understand the terms of what is being charted and what information that will convey. This is the first step to chart analyses for financial forecasting. While the actual name of the chart may remain a mystery, if you see the key and it is diagramming cost per unit vs. time period you can deduce it is showing not only the increase and decrease in value, but the volatility based on how often the up or down changes in any time period.

This is the reason charts are used as opposed to simply numbers at the beginning or end. Volatility is what allows an investor to predict how rapidly things change in any field measured to assign risk as well as to determine potential for profit. While large changes means there is more potential risk on an investment, little or no change means there is little potential for profit as well as most profits in investing are derived from the fluctuation in pricing.

 

Comparison

When comparing multiple different things, the charts are instrumental. It is not enough to know just the prices of different things to make sound investments. To make investments based on more than guessing, you need to know how one thing reacts to another. A common example of this would be to show how the rate of inflation is effecting the stock market. If it shows that nearly every time inflation goes up, a particular stock trends up as well, then you have information that you can use to forecast. Looking at that chart and seeing on the news that inflation is getting higher would be actionable information to allow you to consider purchasing that stock to realize a profit. Separate numbers of inflation rate and stock price alone will not allow you to do that.

 

Advance Chart Types

After the basics, charts are used to show advanced concepts. These include known economic principles that have been proven over time. The proper way to use these involves being able to identify the principle. This is what separates the experts from the merely informed. While it may take years of practice and substantial background to be able to identify these patterns and trends, there is charting software available now that will allow you to put your own data (or pull it from other sources) and not only make the chart, but identify the trend that is taking place to forecast where the chart will move in the future. It is this knowledge that makes charts of such value to the investor.

 

Media Contact Name: James Raglan
Main image credits: RushPRNews
Click here to see all news from this author/company

Filed Under: United Kingdom

RUSH PR NEWS newswire and press release services at rushprnews.com / AH Marketing ahmarketinggroup.com

Content- Legal Responsibility - All material is copyrighted - You may repost but you MUST link back to the original post on your page and acknowledge Rush PR News as the news source. Rush PR News is not legally and/or morally responsible for content of press releases, opinions expressed or fact-checking.

Rush PR News cannot be held legally responsible for material published and distributed through its newswire service or published in its press-room and therefore cannot be sued for published material. Third-party must be contacted directly to dispute content.

Rush PR News is not the contact for material published.

RSSFeed PRESS & SOCIAL MEDIA RELEASES

Time to Replace Your Boiler Then Buy British with Ideal Boilers

Keighley, United Kingdom 05/05/16 · Ideal Boilers is a British Manufacturer based in...

BDO Announces Microsoft’s Jeff Edwards as Keynote Speaker at Connections 2016

TORONTO, ON 04/26/16 · BDO Solutions, award winning Microsoft Dynamics Gold Certified...

OIART Audio Engineering School Dominates Ontario College KPI's

London, Ontario 04/26/16 · The Ontario Institute of Audio Recording Technology (OIART)...

BDO is a Proud Sponsor of VHA Home Healthcare’s Heart of Home Care Awards

Toronto, Ontario 04/22/16 · BDO Solutions, award winning Microsoft Dynamics Gold Certified...

BDO Establishes FileNexus® Integration Practice and ASP Offering

Toronto, Ontario 04/19/16 · BDO Solutions, award winning Microsoft Dynamics Gold Certified...

Treasurer Urges Independent Contractors Working In San Francisco To Comply With Business Registration Requirements

SAN FRANCISCO 04/15/16 · TREASURER JOSÉ CISNEROS URGES INDEPENDENT CONTRACTORS WORKING IN...

Celebrate Canada Day anywhere in the World with a Great Canadian

Amherstburg, ON 04/15/16 · - Participants Get To Choose From Don Cherry, Wayne...

Lift The Mystery Around Digital Literacy For Leaders

TORONTO,ON,CANADA 04/13/16 · Masterclass for Executives Led by Clare McDowall: How...

Top Tips to Choosing a New Boiler

Keighley, Yorkshire 04/11/16 · Is your old boiler letting you down or...

A Platform Made For Achievers Available For Download

SAN FRANCISCO 03/29/16 · Compete and show your achievements. Build your Achiever...

RPRNMag Newsmagazine to Bring Business Solutions to Entrepreneurs With News Stories & Sponsored Content

SAN FRANCISCO 03/28/16 · Newsmagazine to focus on business tips and trends  —...

2016 Springtime Public Relations is Effervescent

SAN FRANCISCO 03/25/16 · Following a long winter, Spring 2016 is promising...

Aspect Imaging Announces FDA Clearance of WristView MRI System

Shoham, Israel 03/24/16 · Point-of-care quality wrist and hand imaging: Transforming the...

New illustrated children’s book raises awareness and dollars for Alzheimer’s.

COBOURG, ONTARIO 03/22/16 · Stirred by her mother’s dementia, artist Kathryn Harrison...