Do stock charts scare you and are a mystery to you? Well, for most amateurs and beginners in trading, they are. But if you want to know how to read Webull charts, this guide can help you because knowing your charts is crucial if you want to make informed and fruitful investments.
The whole purpose of the charts is to tell you how certain stocks are performing on the market. Reading Webull charts is pretty simple and straightforward whether you are using a desktop version or a mobile app. The only difference is that the mobile app has more features that can help you with your trade.
In order to have the best experience possible, you will have to set up your charts the right way and get familiar with chart indicators and what they are telling you. To learn more, keep reading and find out.
Why Is It Important to Know How to Read Webull Charts?
Like many brokerage platforms, Webull also offers real-time data about stocks, ETFs, options, and more. This data is shown in the form of charts, and traders use it so they can know when to sell, buy or hold their stocks and other commodities. There are several reasons why it is important to know how to look at the charts. They can help you with planning your investment, whether to sell or buy certain assets or to help you get to know that asset before buying it. The platform offers charts with a lot of options and indicators that are especially useful for day traders.
On the other hand, if you are a beginner and don’t want to lose your deposit money right away, the best course of action should be to paper trade on the platform for some time. The platform allows all users to paper trade with one million of made-up money so they can practice and learn how the stock market works. This is probably the best way to learn how to read charts on the platform.
How to Set Up Webull Charts?
Once your account is approved, you can start trading on the platform, but first, you need to set up your chart. No matter if you are using the mobile app or desktop app, the process is similar. Here are the main features you need to set up, shown on the desktop version.
|Step 1||Go to the “trade” option in the main menu|
|Step 2||Click on the “settings” button in the far right corner|
|Step 3||On the type of chart menu, choose “advance charts”|
|Step 4||From “Crosshair data style,” choose the following options:|
● Show high/low price
● Overlap volume
● Show flushing light
|Step 5||Click on “Show corporate actions” – earnings, dividends splits.|
Other Charts Options to Set Up Before the Trade?
Whether you are trading with options or stocks, the chart options will be the same. Still, some indicators will be more useful than others. And in time, you will learn which options and indicators are best for you. But to start, you need to understand what kind of features Webull offers. Here are several tools you can use when looking at the charts:
- Indicators – There are many indicators you can use to show you how certain stock is performing on the market. The most commonly used one is Exponential Moving Averages or EMA and Volume Weighted Average Price.
- Sub Charts – You can set up sub-charts to match the main chart on the screen.
- Drawings – You can use a drawing tool (found in the far right corner) to draw lines on your chart. You can choose between horizontal, vertical, trendline, and much more.
- Line style – Another option is the style of your chart. It can be in Candle style, Line, Area, Hollow Candle, Base Line, Bar, Heikin Ashi, and colored bar
Reading the Charts on Webull
No matter how you set up your charts in terms of style (candle or line,) some indicators on the chart will be the same. For instance, you will be able to choose a time spread from one minute to one year. Depending on what you choose, you will see candle sticks (if you set up that style) performance by the minute.
Once you move your cursor on the chart and place it on any candlestick, the numbers in the left corner will appear. You will see the following symbols and numbers that describe those symbols. Here is what they mean:
- Symbol O – This symbol describes the price of the stock on its opening.
- Symbol L – This describes the lowest price that candlestick had in that hour, minute, or day, depending on your settings.
- Symbol H – Shows the highest price of that candlestick in that hour, minute, or day.
- Symbol C – Shows what was the price of that stock on closing.
Learning Tools on Webull
If you want to learn more about trading on Webull, the best advice is to use their learning tools. There are tons of lessons on how to read charts and other technical indicators. Also, you can learn some basics on how indicators on the charts can help you make timely decisions on investing. Another great tool we already mentioned is paper trading. There is no better way to learn about trading, charts, and indicators than in practice. With a demo account or paper trading on Webull, you will be able to do that because these are the same as the real-time data and charts they provide. And since the platform doesn’t charge any fees and the account minimum is $0, you can start learning today without any risks of losing money.