How to Read Stock Charts Tutorial 📈| Introduction to Technical Analysis for Beginners


(upbeat music) – Hello, everyone. Welcome to the Financial
Information channel. My name is Marvin. In this video, I am going to explain on how to read a stock chart, but now let’s start with the video, and the first thing I’m
going to demonstrate on how to read the stock chart. So, let’s go the computer. Now, as you can see in the computer, this is the Netflix stock chart, and what you have to do is put the symbol. The symbol for Netflix is NFLX and it the next column you can set it to show you the
daily or the weekly charts, and in the box below it says that it’s in the
cyclicals and specialty retailers, however, this is more like a
tech and entertainment company. And in the right side,
you can see the date, which is February the 20th, 2018. Now, in the next row it says
that the company opened today at $277 with 74 cents, and the highest price
that the company shares were trading today was $285 with 81 cents, and the lowest price
was $276 with 56 cents, and the previous day
that the company closed was $278 with 52 cents. Now, the next column is
about the fundamentals. Is the price to earnings
is around 222 with 93 cents and one of the many things that the price to earnings indicates is if the company has a
lower price to earnings, it means that the company
is not as volatile. And in the next row it says the EPS. The EPS for this company
is with $1 with 25 cents, and the EPS is the earnings per share. On the next row, it says
last size is 100 shares. Now, you have to multiply
that amount times 100, and the last size means the last time that the company traded. And the next row is the
volume weighted average price, and that’s the average
price of every transaction. And in the next column you can see that the company has options available. It doesn’t pay an annual dividend, it doesn’t have a divided yield
because it’s not available, and that means that doesn’t pay a dividend or doesn’t have a dividend. And in the next row is the SCTR, which means the stock
chart technical rank, and in the parentheses you
will see that is says large. This is a large cap company. And in the same box, right at the end, it says the date just
like I mentioned earlier. This company was positive today. It moved up .05%. So, it actually moved up 14
cents, and the last price just like you see on
the screen is $278.66. And as you can see,
the volume for the day. The volume means the number of shares that were traded for the day. It was over seven millions. And now for the next part
we’re gonna take a look at the stock chart to get an idea how the company is moving so far. And as you can see in the stock chart, you will see a bunch of lines, and we’re going to start with the RSI. The RSI is the relative strength index and it just means on how bullish or how bearish the company is. And bullish means that the company is moving in a positive direction, so the company is moving in price. And bearish means that the
company is losing price. Now, as you can see, this company has an RSI at this moment of 66.75. So, anything that you see over the 50 means that the company shares
are selling really well, and you will see a line in the 70 and that means when the
company moves over the 70 the company shares become more overbought. That means that the share price
might not look attractive, and one of the reasons why the company might
not become attractive is because of other investors might think that the company might be overvalued. Now, if you look in the opposite direction you will see anything under 50 means that the company is bearish, so it might continue moving down in price. And the 30 line becomes
the opposite of the 70 and that means when the
share price goes under the 30 that means that the company
shares might be oversold. And this is just an indicator, the company shares might
continue moving down if the company shares
goes under the 30 line, or it might continue moving up if the company shares
goes over the 70 line. But now let’s continue
with the stock chart. Now, as you can see in the screen, it has a bunch of lines, and the first thing that I wanna focus is gonna be the Bollinger Bands. The Bollinger Bands are those green lines that you see on the outside, and in the middle you will see
a line, that’s the average. And the way that I see
the Bollinger Bands, it could be like a river. When the company becomes very volatile the bands tend to expand, or when the company moves sideways and that means when the
company doesn’t move as much then the bands, those
bands tend to contract. So, that is another technical indicator, but I don’t use them that much. And the next thing they
get are the moving average, and the moving average
is basically an indicator where you can indicate how
the company has been moving either between 20 or 50 or 200 days. Now we’re gonna take a
look at the moving average, which is the 50 day moving average, as you can see in the blue line. And in the blue line you can see that the moving average
it is around 226.88, and that takes account the lowest price that the company has been moving and the highest price that
the company has been moving during those 50 days. And the next thing that
you will see in the screen is the moving average for the 200 days, and as you can see the moving average is between the highest and
lowest price of those 200 days. The share price is 188 with 74 cents. And the next indicator is the MACD, which is the moving average
convergence and divergence, and that indicator shows the relationship between two indicators
between the 26th and the 12th exponential moving averages. Usually, you will see they start moving in a positive or negative direction. However, since Netflix has
been a really good stock, you only see the positive. And the next indicator is the volume. Volume is usually my favorite indicator because you can get an idea how the people are buying or selling shares. And as you can see the volume, you will see the red means
that the company was negative. There were more sellers than
buyers on that specific day. And in the black color you can see that the company was more
positive on that day, so most likely the share price
moved up during that day. And in the bottom of this
chart you can see the date. Since I set the stock chart to daily, you will see the daily volume. And in the right column of the volume you will see the number of
shares that were traded that day. Ideologically, the company shares tend to move up more during earnings, prior to earnings, or after earnings. And that is gonna be
everything for the video. I plan to do more videos
about technical analysis and going more into details
about the technical indicators. This was just a beginner’s stock chart so you can get an idea how
you can read the basics. And as always, you can
like or dislike the video, and remember you can subscribe to the Financial Information channel. I’m gonna continue making
videos about the stock market, personal finance, and
how to make money online. I’m gonna thank you once
again for watching the video. Have an excellent day and
take care, my friends. (upbeat music)

22 thoughts on “How to Read Stock Charts Tutorial 📈| Introduction to Technical Analysis for Beginners”

  1. YEESSS!!!!
    Thank You Marvin!!!
    i learn a lot from YOU, now its a matter of learning what those numerical values tell me about the stock relative to buy sell or hold…long term?short term-but thanx again! go(o)d health and prosperity to you…
    HAPPY WEDNESDAY

  2. Please remember to hit the Notification Bell 🔔 to receive a notification when I upload a new video. Thanks for watching. 🙌

    Additional Popular Stocks Videos:
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  3. Marvin,

    Could you cover more in detail about resistance, support and chart patterns in a future video? Thanks for all the work you do

  4. Thought I would pass this on https://www.cnbc.com/2018/05/22/meet-the-2018-cnbc-disruptor-50-companies.html hopefully you will do a video on these stocks

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