How to read stock charts to better improve your stock picks and timing to get into a good investment.  Some free stock trading tips for any stock market investor looking to make money in the stock market. , get all the best stock tips.

Chart Reading Basics

Charts record the factual price performance of thousands of stocks. Chart patters or (“bases”) are simply areas of price correction and consolidation after an earlier price advance. The skill you need to learn to analyze whether the price and volume movements are normal or abnormal.

History repeats it’s self, make sure you learn how to use historical precedents. There are several price patters you’ll want to look for when analyzing a stock for purchase.

 The most common chart pattern is a “Cup with a handle”.

The most important price pattern looks like a cup with handle, when the outline of the cup is viewed from the side. Cup patterns can run from 7 to 65 weeks but most of the time 3-6 months.

You should look for at least a 30% increase in price in the prior up trend, Together with improving relative strength and a very substantial increase in price volume at some points in the prior uptrend.

Constructive patterns have tight prize areas – there should be some tight areas in the price patterns of stocks under accumulation.

If every week in the base pattern has a wide spread from each weeks high to low point, its been constantly in the markets eye and will frequently not work. Find pivot points and watch “volume percentage change”,

When a stock forms a proper cup with handle chart pattern and then changes through an upside buy point, pivot point or “line of least resistance”.

The days volume should increase above 50% of its price volume. Look for volume dry-ups  near lows of a price pattern. All proper bases will show a dramatic dry-up in volume for one or two weeks along the very low of the base pattern and in the low area of the handle. This means that there’s no more selling and no more stock is coming into the market place. Healthy stocks under this accumulation almost always show these symptoms.

All the free hot stock tips are given to serious investors that are looking to make really good money in the stock market by learning all the  best stock tips from our stock blog. Reading these stock tips can help you become a really good investor for you to be prepared for your next stock investment.