by: Michael Swanson
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You can find the latest stock charts just by going to some financial sites. They are all free and will give you a good knowledge of how the stock is doing. In order to succeed as an investor, you need to be an expert stock chart reader and know how stock charts determine overhead resistance. You may find the task of reading charts very intimidating but when you put in your effort and termination, you can do it.

The first thing you need to figure out when you look at a stock chart is the trend of the stock. The stock may be going up, trading down or moving sideways. You can determine the trend of the stock be drawing simple straight line from one point to the other.

You can use the 20- and 50-day moving average to determine the trend direction. When the 20-day MA is moving above the 50-day Ma, the symbol is trending up. The reverse means that stock is trending down. Using two MA as an indicator is an effective method that will eliminate the whipsaws and timely catch a big trend.

In fact, the meaning of using stock chart is to find support and resistance level. These are the areas where price has the most tendency to visit over time. For a support level, you can expect price to turn upwards in a down trend when it hit the support level. And for a resistance level, you can expect price to turn down in an up trend when it hit the resistance level.

When it comes to trading stocks, all you need to do is to buy when the stock moves up and sell when it moves down. This is simple. However, executing it is not easy at all since we do not know for sure what the market is doing at the time we make a trade.

Being able to read stock charts is critical to an investor's success. No matter what type of investor you are, fundamental or technical; you should know at least how to read stock charts in order to survive in the harsh investment world.

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