Screen stocks. Study the context. Keep the ideas you want to revisit.
Read the date range and price scale before interpreting the shape of the chart.
Confirm the symbol and range
Open the chart for the intended security. Check the visible dates and latest available session. A month of daily prices and several years of history tell different stories, even for the same stock. Start with a range that fits the question you are studying.
Understand a daily candle
A daily candlestick brings together the opening, highest, lowest, and closing price for the session. The body spans the open and close, while the wick extends to the high and low. Check the color convention in the chart rather than assuming all platforms use the same colors.
Look at volume separately
Volume describes trading activity for the bar. Compare it with the surrounding sessions to see whether activity changed. Volume does not identify the reason for a move by itself. Use it alongside the price history and any verified company information relevant to the date.
Add a focused comparison
Once you can read the basic chart, add an indicator with a clear purpose. A moving average can summarize a period; RSI or MACD can provide a different view of momentum. Keep the chart simple enough that you can explain what each added element measures.
Choose a linear or logarithmic scale
A linear scale gives equal vertical space to equal price differences. A logarithmic scale gives equal space to equal proportional changes. A move from 10 to 20 and one from 100 to 200 are both 100% gains, but the second spans ten times the dollar distance on a linear scale. State the scale when drawing a trendline or comparing long histories.
Keep timeframes distinct
A weekly candle aggregates several daily sessions: its open comes from the first session, its close from the last, and its high and low from the whole week. A daily breakout can occur inside an unresolved weekly range. These are chart-reading concepts; the current daily presets retain their daily intervals. Inspect longer context without relabelling a daily rule as a weekly test.
Read our data and methodology notes for calculation context. This guide explains research tools and observations. It does not recommend a trade or investment.