Two Ways to Begin Chart Research
The Charts page supports two different starting points. A user can select a company already shown from the Stock Sage Watchlist, or search for an individual stock directly.
Path 1
Select From the Stock Sage Watchlist
Select a company from the list to load its chart. This is useful when investigating price behavior for a company already monitored through the Stock Sage research process.
Stock Sage Watchlist
Select Company
View Chart
Path 2
Search for an Individual Stock
A stock does not have to come from the Stock Sage Watchlist to begin research. Search for an individual stock to access its chart and available report.
Individual Stock Search
Search Stock
View Chart + Report
Searching for an Individual Stock
Use the existing individual-stock research path without assuming any unconfirmed search controls or report contents:
- 1Go to the Charts page
- 2Use the individual-stock search functionality
- 3Search for the stock you want to investigate
- 4Select the applicable stock
- 5Open or review its chart
- 6Access the available stock report when additional company information is desired
Why Individual-Stock Search Matters
Research does not always begin with the Friday Stock Sage scan. An investor may already have a company in mind from prior interest, other research, comparison work, or a desire to decide whether the company deserves monitoring.
Stock Sage Path
Discovery
↓
Stock Sage
↓
Watchlist / Research
↓
Chart
Individual Stock Path
Company Already in Mind
↓
Search Individual Stock
↓
Chart + Report
↓
Research
Sage Trading Suite can support research that begins with Stock Sage or research that begins with a company you already want to investigate.
The Individual Stock Report
When researching an individual stock, the user can also access the available stock report. The report provides an additional research resource alongside the chart, helping the user investigate the company rather than relying only on price movement.
The available report provides additional company information that can be considered alongside the stock's chart.
Where Charts Fit in the Sage Research Process
- 1
Discovery or Individual Stock Search
- 2
Company Research
- 3
52-Week-Low / Price Context
- 4
Watchlist When Appropriate
- 5
Chart
- 6
Price and Trend Context
- 7
Continue Research
Charts add another important question: “What has the stock price been doing?” They do not replace questions about earnings, profitability, the balance sheet, the reason for a decline, or current valuation compared with history.
Understanding Candle Timeframes
Changing the candle timeframe changes how much trading activity each candle represents.
Daily
Each candle represents one trading day and provides a closer look at recent price movement.
Weekly
Each candle represents approximately one trading week, reducing some day-to-day movement.
Monthly
Each candle represents approximately one month and provides a longer-term perspective.
The company did not change when you changed the timeframe—your view of its price history changed.
Why Look at More Than One Timeframe?
A stock can appear strong or weak over a short period while showing a different longer-term history. In this fictional example, all three observations can be true at once:
Daily
The stock has risen for five trading days.
Weekly
The stock is recovering from a several-month decline.
Monthly
The stock remains substantially below its longer-term highs.
Timeframe changes perspective—not reality.
How to Read a Candlestick
Each candle contains opening, highest, lowest, and closing price information for the selected period.
Body
Shows the relationship between opening and closing prices. A close above the open means the period finished higher; a close below the open means it finished lower.
Wicks or Shadows
The extensions above and below the body show prices reached above or below the body during that period.
Do not rely only on candle color because chart themes can change. This lesson does not teach complex candlestick trading patterns.
What Is a Simple Moving Average?
SMA stands for Simple Moving Average. It calculates an average price over a specified number of periods and updates as new price information becomes available. Stock Sage Charts provides SMA 20, SMA 50, SMA 100, and SMA 200.
Daily
SMA 20 uses approximately 20 daily periods.
Weekly
SMA 20 uses approximately 20 weekly periods.
Monthly
SMA 20 uses approximately 20 monthly periods.
The Four Moving Averages
SMA 20
More responsive to recent price changes.
SMA 50
Provides broader price context and generally changes more slowly than SMA 20.
SMA 100
Provides a longer historical price reference.
SMA 200
Provides a long-term historical price reference and changes more slowly than shorter averages.
Shorter moving averages generally respond more quickly to changing prices. Longer moving averages generally respond more slowly because they incorporate more periods. This lesson does not create crossover or price-crossing trading rules.
Moving averages describe price history. They do not know the future.
Using the Indicator Controls
Available indicators include SMA 20, SMA 50, SMA 100, SMA 200, RSI (14), and Stochastic (14,3). The chart can show latest or current price information and selected indicator overlays where applicable.
All
Allows the available indicators to be selected.
Clear
Removes selected indicators so the candlestick chart can be viewed more simply.
A clear chart can sometimes answer a question better than a crowded chart.
Understanding RSI (14)
RSI stands for Relative Strength Index. It is a momentum indicator that compares the magnitude of recent gains with recent losses. RSI (14) uses 14 periods of the selected timeframe and generally ranges from 0 to 100.
Above approximately 70
Often described as overbought. This does not mean the stock must fall.
Below approximately 30
Often described as oversold. This does not mean the stock must rise.
A stock can remain at elevated or depressed RSI levels.
RSI and Timeframe
On Daily, RSI uses daily periods. On Weekly, it uses weekly periods. On Monthly, it uses monthly periods. Daily RSI and Monthly RSI can therefore show different conditions simultaneously. Neither timeframe automatically overrides the other.
Understanding Stochastic (14,3)
Stochastic is a momentum indicator that compares the stock's recent closing price with its recent trading range. Stock Sage provides Stochastic (14,3), which generally moves between 0 and 100.
Above approximately 80
Often described as overbought. It is not an automatic sell instruction.
Below approximately 20
Often described as oversold. It is not an automatic buy instruction.
Stochastic describes momentum relative to a recent price range. It does not predict the future.
RSI and Stochastic Are Different
RSI
Examines the strength of recent gains relative to recent losses.
Stochastic
Examines where recent closing prices sit relative to the recent trading range.
Both are momentum indicators, generally range from 0 to 100, can provide additional price context, can remain in extreme areas, and should not be treated as automatic trading signals.
Agreement between indicators can provide additional context, but it still does not guarantee the next price move.
Connecting Charts With the 52-Week-Low Process
If Stock Sage identifies a fundamentally qualified company near its 52-week low, the chart can help visualize how the stock arrived there.
- Was the decline gradual?
- Was the decline sudden?
- Has the stock recently stabilized?
- Is the longer-term trend different from the short-term trend?
- How does current price compare with its moving averages?
- What do momentum indicators show?
The chart cannot answer why the business changed. That requires company and fundamental research.
Fictional Example — Same Company, Three Timeframes
Horizon Manufacturing (HZM) is a fictional company used only for education.
Daily View
Recent candles show a rebound from $40 to $44. Recent price momentum has improved.
Weekly View
The stock declined from approximately $60 to $40 over several months before rebounding. The recovery exists within a larger decline.
Monthly View
The stock remains substantially below longer-term price levels. The recent rebound looks smaller from this perspective.
Fictional Example — Moving Averages
Continue with fictional HZM:
Current
$44
SMA 20
$42
SMA 50
$47
SMA 100
$51
SMA 200
$55
Price is above the shorter SMA 20 but below SMA 50, SMA 100, and SMA 200. This describes recent improvement relative to the shorter average while price remains below several longer historical averages. It does not establish that HZM should be purchased, that a bottom occurred, that price will keep rising, or that the longer-term trend must reverse.
Fictional Example — Momentum
RSI (14)
32
Stochastic
18
Both are near commonly referenced lower momentum areas and may indicate substantial recent selling pressure. They do not establish that HZM cannot fall further, is undervalued, has an improving business, or should be purchased.
Oversold is a description of momentum—not a guarantee of a reversal.
Example — Researching a Stock Outside Your Starting Watchlist Selection
Riverstone Services (RSS) is a fictional company used only for education. The investor already has RSS in mind and uses individual-stock search rather than beginning with a Stock Sage Watchlist selection.
- 1Search for RSS
- 2Open its chart
- 3Review Daily, Weekly, and Monthly price behavior
- 4Add moving averages where useful
- 5Review RSI and Stochastic where useful
- 6Open or review the available stock report
- 7Consider report information alongside the chart
- 8Decide whether RSS deserves additional research or monitoring
This demonstrates that Sage Trading Suite research does not always have to begin with the Stock Sage Friday scan.
Charts and Fundamentals Can Disagree
Strong Historical Fundamentals + Weak Chart
May indicate a fundamentally interesting company experiencing significant price weakness that deserves investigation.
Weakening Fundamentals + Improving Chart
May indicate recovering price even though important business questions remain.
Strong Fundamentals + Improving Chart
May provide multiple reasons for continued research, but does not automatically create a buy instruction.
When price and fundamentals tell different stories, do more research—do not simply choose the story you prefer.
What Charts Should Not Become
- A fortune-telling tool
- An automatic buy system
- An automatic sell system
- Proof that a stock has bottomed
- Proof that a stock will return to its previous high
- A replacement for fundamental research
Likewise, the available individual-stock report is a research resource, not an automatic investment recommendation.
A Repeatable Chart Routine
- 1Choose your starting path: Stock Sage Watchlist or Individual Stock Search.
- 2Select or search for the company.
- 3Review the available stock report when appropriate.
- 4Start with the price chart.
- 5Look at Daily candles.
- 6Change to Weekly candles.
- 7Change to Monthly candles.
- 8Compare the different timeframes.
- 9Add SMA 20, 50, 100, and 200 as needed.
- 10Observe where price sits relative to the moving averages.
- 11Check RSI (14) if momentum context is useful.
- 12Check Stochastic (14,3) if additional momentum context is useful.
- 13Clear indicators when a simpler view is useful.
- 14Compare the price story with the company information.
- 15Continue research if the company still deserves attention.
Use the chart and report to generate better questions—not to eliminate the need for questions.
The Complete Chart Workflow
- 1
Start
- 2
Watchlist Selection or Individual Stock Search
- 3
Chart + Available Report
- 4
Daily / Weekly / Monthly
- 5
Moving Averages
- 6
RSI / Stochastic
- 7
Compare Price With Company Research
- 8
Continue Research
Charts help connect the company's fundamental story with its price history.
Knowledge Check
Choose an answer for each question, then check your response.