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How to interpret stock market clues?

Posted By On 8/30/2008 10:44:00 PM Under

1. The stock market is a sea of emotions and a correct reading of clues of market enables one to get the correct perspective of the market. 

2. In case buyers have an upper hand than the position of closing price relative to the previous close will be higher and thus stock is in uptrend.

3. Similarily one will be able to  identify the trend of a stock by virtue of reading the closing price relative to the range (where range is the difference between the highest and lowest prices traded during a dayor period).

4. Thus keep an eye on expanding or contracting ranges;gaps between consecutive ranges; and
volume traded and one will be able to get the clear indications regarding the way stock is going to behave in coming days.


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