There are different schools in the investment world, and one of the biggest is technical analysis vs. fundamental analysis.
Technical analysis fanboys believe that the answers to future price movements lie in the candlesticks. The stock chart candlesticks, not the fortune teller kind. (They're often right until they're wrong, when they're then very, very wrong, and lose everything.)
Fundamental analysis fanboys believe that the technical analysis kids might as well be reading tea leaves. Instead, they think the trick is to research the intrinsic value of a company's ability to produce earnings by looking over its financial statements, management...things like that. Then you invest in stocks that appear to be have good, long-term future earnings prospects.
Vertical line charting is one of the tools in the technical trading toolbelt, so fundamental fanboys: you can stop reading now.
Vertical line charting is one of the most basic tools of technical analysis. It tracks the price trend of a security, taken as daily averages, with the high and the low price of the day. These are what make up the basic lines on vertical line charts, similar to candlestick charts, which also include opening and closing prices.
It’s pretty easy to “eyeball” basic up-or-down trends on a line chart, which is why vertical line charting is so popular. Easy peasy.
Related or Semi-related Video
Finance: What are Triple Bottom and Trip...2 Views
Finance allah shmoop what are triple bottom and triple tops
All right well this is a triple top It wants
to break out The stock was trading down here around
five bucks a share in and glam o it went
up And yes blam o is the name of the
company's new anti constipation drug a huge hit So it
went up up up to hear it Fifteen bucks tripled
in value in just a few months but then sober
reality began to hit the investing community There simply wasn't
enough constipation to go around So the stock began to
flag and traded down teo here this level at twelve
bucks But then glam o again released big news a
partnership with manish of its grandma tsa and the american
cheese manufacturing association So the stock raced again to fifteen
But no there just wasn't enough enthusiasm from buyers pay
more than fifteen bucks a share for it So you
know that's all despite this newly created a kind of
market So the stock sank back to twelve only to
then have investment interest from procter and gamble owners of
sharman who bought five percent of the company at thirteen
fifty ish year and left a lot of investors thinking
surveyed by the whole company complete with its product line
of anti constipation drinks Waymo glam Oh thankyou memo But
alas the investment community would not pay up past fifteen
to share and the stock flagged again sinking back to
twelve having created a triple top and needing something to
make things really start you know going So yeah that's
a triple top What about a triple bottom Well a
triple bottom and basically just the same thing in reverse
like this keeps hitting a low point looking like it's
going tio bottom out further But then it recovers on
the subject of bottoming out well glam o is now
available in new chewable gummy form Yeah glam o so
you never have to worry when your bottoms out
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