Using Free Stock Market Software For Analyzing Stock Price Movements
In this post we shall debate how you may use free stock market software to perform technical analysis and identify direction of share price. Why are we deliberating “free” software? The explanation is many of us believe that you can only do good research and make share price predictions using awfully classy and dear software. That’s not right.
Some of the stock market software is actually freed from cost. Now, our goal here isn’t to chat about the merits and demerits of this free stock market analysis software. That’s for anyone that uses the software to judge. But we will tell you that it would much rely on what research you need to do. Tools available at MSN, yahoo and Google are reasonably tough and supply great capabilities to perform technical research.
Let us identify some of the basic analysis that one can do using this free stock market software:
* First, one can plot the share price chart movement for a number of time intervals. At the lowest level you’ve got the ‘intra-day” chart which is essentially an hourly chart movement for a single trading day ( normally today’s ). Then you can sometimes go all the way to ten years and, in a number of cases, for the life of the stock. Why is this valuable? It is extremely valuable as it gives us a time point of view on the direction. For instance, the share price of a company may look flat or maybe down over a 3-month chart. But over a three year period the share price might be on a roll ( trending higher ). So, the time-frame factor permits a user to investigate based primarily on that users time viewpoint ( read as trading time-frame ).
* Secondly, the software permits one to plot the price movement against another item ( or a couple of items ). As an example, sometime back, we investigated a chart of the 3 major banks – JP Morgan Chase, CitiGroup and B. O. A – in the same chart over the same period to research which of these Banking sector firms share price moved the best under similar market conditions. Naturally, all of these banks had different financial numbers. Although it was still a good research point to grasp the strength of each bank in comparison to one another. ( The comparison can be seen thru a link in the signature box of this article ). One can also plot a chart comparing how a stock price has compared against an index for a similar timeframe. This is potent as it tells us how a share price is performing relative to the general market.
* Thirdly, most free stock market software will permit us to identify the support and resistance levels of a stock cost. These are the highpoints and lowpoints of the share price over any specific period. For example, one can review the share price over a 3-month period and identify the highs as the resistance points and the lows as the support points. This permits traders to appreciate what levels usually a share price has to go past to break out. So, we had looked at Microsoft ( ticker symbol : MSFT ) as an example in another article and noted that, for the main part, the share price has been trading in the range of $20-30 over the last ten years. That may be a long timescale and sometimes not utilised by traders. the technical research would say, that $20 is the support point of MSFT and $30 is the resistance point. If the stock breaks any of these numbers, then it is probable to keep going that way further.
There are lots of other research points that we are able to do using free stock market analysis software. These will be covered in another future article under trading indicators. For the moment, we are hoping we have busted the parable that free software for stock market analysis is no good.