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Price Graph Basics
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Reading Graphs


Lucent Technologies Inc (LU)








ClearStation's graphs facilitate quick assessment by displaying important data clearly.

The top chart is the price graph. This graph charts a stock's price over time. The bars across the top of the price graph are trending bars (green for uptrends, red for downtrends). Generally, you want to go long stocks whose graphs show predominantly green bars and short (or avoid) stocks where red predominates.

  • The price bars are usually drawn in red. The bottom of the price bar marks the low for that day, and the top indicates the high. On the right side of the bar, a tiny horizontal red dash marks the closing price. It's bullish if the closing price is near the high of the day, and bearish if the closing price is down toward the day's low.

  • Every now and then you'll see a blue bar instead of a red one. A blue bar indicates that the stock reached a 52-week record price high that day.

  • The 50-day exponential moving average (EMA) is drawn in purple. The 13-day EMA is drawn in green. These lines identify the overall direction of the price of a stock. The most important thing to note is whether prices are above or below these two moving averages. The "Moving Averages" section explains how to use this information when making a trade.


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