Here is the color scheme most TV networks use: Green indicates the stock is trading higher than the previous day's close. Red indicates the stock is trading lower than the previous day's close. Blue or white means the stock is unchanged from the previous closing price.
The goal of most investors generally is to buy low and sell high. This can result in two quite different approaches to equity investing. One approach is described as "trading." Trading involves following the short-term price fluctuations of different stocks closely and then trying to buy low and sell high.
Red means stop.
She goes on to say that some people have a built-in negative reaction to red. The next time you get a chance, take a look at the direction the stock market went on a particular day.
The red to green move is used to describe a trading scenario where a high volume stock that opened in the red at market open (in the morning) closes at a price that is higher than the previous day's closing price — the keywords are “break previous day's closing price”.
We want to know if, from the current price levels, a stock will go up or down. The best indicator of this is stock's fair price. When fair price of a stock is below its current price, the stock has good possibility to go up in times to come.
This has traditionally been used by retailers to grab a customer's attention by painting their SALE signs red. Red and green are complimentary (opposite) colors, and it's only logical to use green for the opposite buy.
A red volume bar means that the stock closed lower on that day compared to the previous day's close.
This is trading in companies that focus on improving the environment. It aims to speed up the change to a cleaner environment, so it includes sectors such as the renewable energy market and energy efficiency.
The upshot: Like early market trading, the hour before market close from 3 p.m. to 4 p.m. ET is one of the best times to buy and sell stock because of significant price movements, higher trading volume and inexperienced investors placing last-minute trades.
Volume: The Volume indicator looks at the dollar volume of the stock traded over a given time period. The taller the bar, the higher this dollar volume traded. The color of the bar is dependent on whether the stock's price moved up (green) or down (red) over the period.
So what is a red to green move? It is defined as a high-volume stock that has opened red, bottoms out in the morning after market open, which is then followed by a move higher to break the previous day's closing price. This creates a "red to green" break-out move.
If the upper wick on a red candle is short, then it indicates that the stock opened near the high of the day. On the other hand, if the upper wick on a green candle is short, then it indicates that the stock closed near the high of the day.
If the bid or asked price is red, it means that it's a down tick (green for up tick). (5) Size numbers represent 100's of shares offered, rounded down to the nearest 100.
A red candlestick (regardless if it's hollow or not) means that the closing price is LOWER than the previous candle's closing price. A green candlestick (regardless if it's hollow or not) means that the closing price is GREATER than the previous candle's closing price.
The Moving-Average Convergence/Divergence line or MACD is probably the most widely used technical indicator. Along with trends, it also signals the momentum of a stock. The MACD line compares the short-term and long-term momentum of a stock in order to estimate its future direction.
The closing price on a stock can tell you much about the near future. If a stock closes near the top of its range, this indicates that momentum could be upward for the next day.
The MACD is the best way to predict the movement of a stock.
So, if you're asking yourself if now is a good time to buy stocks, advisors say the answer is simple, no matter what's happening in the markets: Yes, as long as you're planning to invest for the long-term, are starting with small amounts invested through dollar-cost averaging and you're investing in highly diversified ...