Use the Reading Stock Charts: Technical Analysis and Price Behavior lesson to introduce students to technical analysis and how investors use historical price and trading information to examine market behavior. Students compare fundamental and technical analysis, learn to read common stock charts, and interpret trends, support and resistance, moving averages, and trading volume. Through the accompanying visuals and student handout, students apply these concepts to hypothetical stock-price data and consider the limitations of using historical patterns to evaluate future price movements.
- Emphasize that technical indicators can help investors identify and describe historical patterns and trends but cannot predict future stock prices with certainty. Technical analysis should be considered alongside fundamental information and other investment research.