A tale of 2 "Stock Charts"

Have you ever seen on the internet where they show you one picture from one angle then the same objects shot from a different angle? If you have you already know how extremely different they can seem. The photo can go from “wow, why are they doing that?” to “wow, that’s so cool they are doing that”!! All with nothing more than looking at it from a different perspective.

Stock charts are the same way. And here at investingwithfaith.com we love using stock charts. Stock charts tell us the past, but they also show us patterns, areas of interest, high or low volume areas. Right now there’s no denying stocks have been rotating and where we land no one can say for sure. That is why it’s always a good idea to look at different stock charts, with different time frames. To look for a different perspective. Myself, I even look at different types of stock charts and then look for similarities, think RENKO, PnF, even Elder Bars.

These are 2 different stock charts of the same underlying. The SPY which is the ETF of the S+P. The first one is a one year stock chart with daily bars, the second one is a 5 year stock chart using weekly bars. Both stock charts contain the 20 day EMA which is in red, and the 50 day SMA which is in blue. Both show very little volume increase on this selloff. If you want more info on how we use them simply click investingwithfaith.com, go to the tab at the top that says “Deep Dives” and you will find it there ( more articles are in the works )

Invest wisely, live charitably and be well

Brother Bill