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Topic: Chart reading and bid-ask spread?

Jeff240sx
Member

Rate Member

posted

Couple questions. I'd like to learn to see the patterns that you all go off to find the next run or gap. I've spend a lot of time searching around, and only get the basics of chart reading. I understand the points on the x,y axes, but don't see how patterns can be found, or what volume leads to.

Also - large bid/ask spreads. I've seen stocks at .02 bid, .015 ask, and I've seen them the opposite. What do these signify? Obviously the .02/.015 means that more people want the stock than those that want to sell it. I do know the supply/demand aspects of economics. But - what does this signal in the day trading market?

Here's a stock that many have called a gapper for Thurs a.m., and I would like to know why.
http://stockcharts.com/h-sc/ui?s=sevi

I'm not going to ask about it in the .11 and above forum - last time I got no answers and a 1-star rating.
Anyway - I'd like to be educated.

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glassman
Member

posted

Jeff, the best way to begin to recognize chart patterns is to use this tool..

http://stockcharts.com/def/servlet/SC.scan

gappers can't be ID'ed on daily charts..you need an intraday chart to spot them....

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Don't envy the happiness of those who live in a fool's paradise.

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Machiavelli
Member

Rate Member

posted

or you can learn chart reading and such from Toni Turner's two books:

A Beginner's Guide to Short Term Trading

A Beginner's Guide to Day Trading Online

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Let the world change you... And you can change the world.

Ernesto "Che" Guevara de la Serna

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