Stock Prices and Stock Charts for BeginnersAs we wait for President Obama's conference I suspect the markets won't go anywhere much until he does actually speak. The video below is an interesting look into stock prices and what the stock charts are saying. Of course it is all conjecture but at you least you can see if stock prices do actually go to where the speaker - the Stock Mentor - thinks they will.
He is generally rather cautious and is expecting a pull-back from current stock prices. 1140 seems to be resistance level that the SandP needs to get over but of course there is no guarantee that it will.
The charts he uses are candlestick charts and if you have no idea what a candlestick chart is then take a look here - stock charts for beginners they are very widely used by stock market professionals to give an idea of where stock prices are headed, so even if you don't use them yourself it is useful to know what the 'experts' might be thinking when they look at the charts to try and inform their stock trading decisions.
Some people think stock charts are akin to tea leaves, but I disagree, stock charts are in fact a reflection of human behaviour over time. They also often turn into self-fulfilling prophecies i.e. if people look at the prices on the stock charts and expect them to react in a certain way at a certain time, then they tend to position themselves in advance in order to take advantage of the stock price moves they expect to see - this of course often causes the very effect they are expecting to see, thus confirming what they were expecting and becoming a self-fulfilling prophecy.
So you may wish to argue about cause and effect on the stock prices and charts but it would be foolish to ignore the data and try to fight the crowd. Take care - stock trading is a minefield !
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