Investing Tip #4: Chart reading is the most important part of investing.

Give yourself a huge advantage over other investors by mastering this skill. [12 Days of Learning by Investor's Business Daily]( [Stock Chart Reading] When people ask, "Justin, what's the first skill I need to be a good investor?" My answer is always the same: Stock chart reading. If you’re investing your money and you don’t know how to read a chart, you’re putting yourself at a HUGE disadvantage. The key to success in the market is building up small advantages wherever you can find them, and stock chart reading is advantage #1. Learning to read a chart is simple! People get put off by stock charts because they can look confusing at first. But I’ll show you everything you need to know in this email! Here’s what the lines and marks mean. [What the lines and marks means. ]( This is a daily chart, which is best for spotting specific buy and sell signals. Weekly charts look similar, but are helpful for spotting longer-term trends. 1. Price: The price area shows daily changes in the price. The vertical bars in the price area of the daily chart show the price range for that day. The small intersecting horizontal dash within the price bar indicates the current price or where a stock closed at the end of the day. The color of the price bar represents whether the stock closed up (blue) or down (red) for the day. 2. Volume: The vertical bars in the bottom of the chart indicate the volume (i.e., number of shares traded) that day. The color of the volume bar represents whether the stock closed up in price (blue) or down (red) for the day. In the volume area, the red line shows the average volume for that stock over the last 50 days. [Click here to watch a video about how price bars and volume bars work!]( 3. Moving Average Lines: This horizontal red line tracks the average share price over the last 50 days of trading. The black line tracks the average price over the last 200 days. Below, in the volume area, the red line shows the average volume over the last 50 days. [Check out this quick video showing how moving averages work!]( 4. Relative Strength line: On the charts I like to use (you can find them on [investors.com]( there’s an additional line in blue that gives you a quick look at how well the stock is performing relative to the overall stock market. It’s called the Relative Strength line, and it compares the price movement of that particular stock to the price movement of the S&P 500 (which is often used to represent the overall market). If the line is going up, the stock is outperforming the S&P. Now go check out a stock chart and put that into action! [Here’s Apple’s chart from investors.com](. You’ll see all the symbols I told you about earlier, and if you’re a member of IBD Digital, you’ll also see exclusive stock ratings that tell you how highly the stock ranks and how strong it is. Want to unlock all the members-only stock information? [Take an IBD Digital trial for only $1 a week for 5 weeks with this special link]( Tomorrow: I’ll show you the stock selling rules that maximize your profits and protect your portfolio. [Investor's Business Daily]( [Facebook]( [Twitter]( [LinkedIn]( [You Tube]( [Google+]( For further assistance or to contact IBD, please visit . To update your email communication preferences [click here](. You received this email because you are currently subscribed to receive Investor's Business Daily Offers via Email. [Click here]( to unsubscribe at any time. View Investor's Business Daily's [Privacy Policy]( [Terms and Conditions](. Investor's Business Daily, IBD, Leaderboard, CAN SLIM and corresponding logos are registered trademarks owned by Investor's Business Daily, Inc. [Copyright and Trademark Notice](. MarketSmith is a registered trademark of MarketSmith, Incorporated. Copyright © 2019 Investor's Business Daily, Inc., PO Box 66904, Los Angeles, CA 90066. All rights reserved. ID: 7364