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Adding Key Overlays to Stock Charts for Decision Making

By: Greg Schnell and Lita Epstein and

Updated: 12-01-2017

From The Book: Stock Charts For Dummies

Stock Charts For Dummies

Explore Book Buy On Amazon

Many types of overlays are available to help you read your stock charts. Here are some of the basic overlays you can add to your stock charts:

Moving averages: Help you more easily spot a trend by smoothing out price action based on past prices
Horizontal line: Enables you to more easily see the top and bottom of a trend
Price channels: Help you see the highest high and the lowest low on a chart
Bollinger Bands: Show the upper and lower limits of normal price movements
Keltner channels: Show the upper and lower limits for price movements based on an average of prices
Moving average envelopes: Form a channel using simple moving averages
Events: Mark important events such as dividends and stock splits
Pivot points: Show the point at which the largest price movement is expected (used primarily by short-term traders)

About This Article

This article is from the book:

Stock Charts For Dummies ,

About the book authors:

Greg Schnell, CMT, MFTA, specializes in intermarket and commodities analysis for StockCharts.com. He contributes market analysis commentary to several blogs that garner between 5,000 and 10,000 readers weekly.

Lita Epstein, MBA, has written more than 40 books, including Trading For Dummies, Bookkeeping For Dummies, and Reading Financial Reports For Dummies.

This article can be found in the category:

Stocks ,

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