Many types of overlays are available to help you read your stock charts. Here are some of the basic overlays you can add to your stock charts:
- Moving averages: Help you more easily spot a trend by smoothing out price action based on past prices
- Horizontal line: Enables you to more easily see the top and bottom of a trend
- Price channels: Help you see the highest high and the lowest low on a chart
- Bollinger Bands: Show the upper and lower limits of normal price movements
- Keltner channels: Show the upper and lower limits for price movements based on an average of prices
- Moving average envelopes: Form a channel using simple moving averages
- Events: Mark important events such as dividends and stock splits
- Pivot points: Show the point at which the largest price movement is expected (used primarily by short-term traders)
