To give you an idea of what a company’s stock price has recently done our candlestick chart with four simple moving averages can help.
Here's how you can make the most of it.
Where to Find It
You can see the chart by clicking on any company name that comes up in the screener.
A click takes you to the company dashboard where the chart is part of a lot of data you can see on the company.
Company Dashboard
You can find out more about what you can see on the company dashboard in the following two articles:
- Improved company dashboard gives you just the info you need.
- How to analyse a company in 2 minutes.
- Unlocking Long-Term Insights: Historical Valuation Ratios Now Available! 📊
What does the chart tell you?
The candlestick charting feature gives you a customizable chart, which include 20-, 50-, 100-, and 200-day moving averages.
The moving averages help you spot trends easily.
How you can use it
Using it is easy.
You can toggle moving averages on and off with a simple click, allowing you to see only the charts you need.
This is how you can change the moving averages:
How to add and remove moving averages
Six Months Default and How to Enlarge
The chart is a candlestick chart that shows the high low and close of each day along with the colours green if the price was up for the day and red if it was down
The default chart period is six months but if you hold your mouse pointer over the chart and move your mouse wheel you will see that the chart gets longer in other words back in time or shorter in other words showing you a shorter time.
The maximum period that can be shown is three years.
If you click on the magnifying glass at the top right of the chart it opens the chart on a full screen width so you can see more detail.
What a Candlestick Chart Tells You
A Candlestick chart designed to give you a lot of information including trading patterns over time.
This is what it looks like:
Candlestick chart example
A single data point (Candle) on a Candlestick chart shows you the detailed price movement over the course of a day.
Each candle shows you:
- Open Price
- Highest price of the day
- Lowest price of the day
- Closing price
- Days movement in colour
In a Candlestick chart, each point consists of a rectangle (body or real body) and a vertical line (shadow, wick, or tail).
The top and bottom values of a vertical line show you the highest and lowest prices of the stock for that day.
The bottom and top values of the body (rectangle) show the opening and closing price of a stock.
Movement On Day
The fill colour of the candle shows you if the Close price is higher or lower compared to the Open price of the day.
If the stock closes higher than its opening price the candle is coloured green, but the body is not coloured. It if the stock closes lower than its opening price, the candle is red , and the body is filled red.
Movement Compared to The Previous Close
The candle colour red/green (not fill colour) shows you if the Close price is higher (green) or lower (red) than the previous day’s closing price.
How to Understand a Candlestick Chart
Look for the following:
- Colour - Green (bullish) or red (bearish) candles.
- Body size - Wide range between open/close means a large price move
- Wick size - Long wicks indicate high volatility and swinging prices
Large shadows show high volatility and while small shadows reflect consolidation around the open and close prices.
Click here to start using the Candlestick Charts in your portfolio NOW!