We all love trading! Investing in stocks helps us earn an enhanced income. But that’s just one piece of the puzzle. Developing an understanding of CHARTS is KEY to becoming a successful trader! Therefore todays post is critical for any person looking to dive headfirst into trading.
Have you ever wondered how people know when to buy or sell a particular stock? Or do you want to make better trading decisions? If yes, then we are excited to introduce IIFL Markets Pro charts that consists of every stock and index used by all experts, masters and professionals to gather information, evaluate conditions and make decisions with confidence. In this first installment of our series on charts you will learn about IIFL’s stock charts new features, and basic tips on usability and stock analysis.
In our Pro charts you can now compare two or more companies stock charts on the same page. Wow! You can also select the chart style you want to view (Candlestick, Line, Coloured), a feature that aids in forecasting price movements. Coming to the MAIN feature; you can choose from over 200+ new indicators acting as stock analysis tools that can help you create your own opinions on price movements and earn profit. The screenshots below showcase the same.
Compare stock charts of different companies simultaneously. The image below compares Titans stock chart with Infosys.
Apply 200+ studies to a stock chart. The image below shows a list of studies that can be implemented on a singular stock chart.
Save your views and studies on a stock chart by clicking the view tab in the advanced charts section.
Draw on a live stock chart and make comments on price points.
It is highly recommended that a user clicks on advance charts to utilize all the features IIFL Markets Pro’s charts is offering. So how does a user access advance charts?
Click on 1 day, 5D, 1 month, 3 month, 5 month and 1 year stock charts to easily capture the trend for the selected timeframe either on a company page or on the advance chart feature. Subsequently, depending on the selected timeframe the candlesticks size will change by default providing the best view for a stock chart.
By adding studies to a stock chart it becomes easy to identify a trend, but more importantly it helps in risk management and finding the pivot points for a stock. A pivot point is essentially a price point used by a trader as a possible indicator of market movement. You can implement studies by clicking on the symbol indicated on the image above in the advanced chart section. Once you add studies they can also be saved onto a stock chart for a particular company.
We are pretty sure that now you have an idea of what a chart is and how they are supposed to be used for trading. But it is possible that you are not sure what studies should you apply to a stock chart. That is completely normal. Below is a list and explanation of a few widely used studies that are used as stock market technical analysis tools and can be very useful. We personally recommend using these tools to further understand data as well!
Price & Volume: It is important you look at the price and volume of a chart together to understand the “story” behind the movements on a stock chart. Only looking at the price movements does not tell you how serious the buying or selling is.
For example, if a company’s stock falls by 3% it might make you nervous, however if the volume is below average it indicates that large investors who have the ability to influence the market are not selling aggressively. Therefore, this type of data can only be spotted if you use our stock charts.
Moving averages: The moving averages line, simply tracks the share price movement over a period of time. They are mainly used to understand whether a stock is being enthusiastically bought or aggressively sold.
Daily vs Weekly charts: New investors always ask "should I use daily or weekly charts?" The answer is BOTH. The weekly chart gives you a long-term perspective not letting you get overwhelmed or make impulsive decisions when there is volatility. The daily chart gives us an outlook on daily price movements and volume traded a certain times.
Charts are best viewed when you apply 3 studies. If more than 3 studies are applied the view can get compressed and it wont be the most optimum way to look at a stock chart.
It is best to view a stock chart horizontally or in landscape mode.
If the crosshair or draw feature is enabled use two fingers to scroll on the chart.
On the advanced chart feature you can also view dividends, bonuses, events, news, rights and split.
Click here to access our amazing Pro charts, and stay tuned for our Pro charts 2.0!