Graphs are the fastest and easiest source that let you know about a particular stock and its market behaviours. Although, when you’re entering the market graphs alone are not enough but helps you significantly cut time and effort when it calls for quick decision-making situations.
Graphs contain the complete historical background about a particular stock and help traders in predicting the financial activity of the stock in the future. A professional trader can certainly temper financial trading decisions by using a graph system but for those who use it in isolation; they miss out on its full potential.
For an instance, We all know that higher highs and higher lows mean a rising market. The trend is upwards. By properly analysing these charts, graphs, various decisions and strategies can be formulated to help traders to be at front at all times.
Usually, trading charts and graphs are used to mark market trends and entering the market without analysing the graphical background of the stock would be nothing but gambling your investments over a highly unpredictable and highly volatile market. Various traders have their way of using graphs but few uses, every trader can easily use is analyse the price of stocks, rising and falling volumes, support & resistance levels etc. Because traders can’t memorise entire data, trend of all stocks but graphs contain & show the entire data. These graphs and charts are definitely dependable indicators of all the factors that affect the market.