Ticker&TapeHow to read a Ticker&Tape chart
A Ticker&Tape chart packs a lot of information into one screen. Here is a quick tour, top to bottom, with links to the lesson that explains each piece in depth.
Price and moving averages
The main panel shows price as daily or weekly candles or bars (see candlesticks and bars). Two moving averages are drawn by default: the 50-day and the 200-day lines. They smooth out price and show the medium and long-term trend. You can add any simple or exponential average with the Indicators button.
Switch between daily and weekly at the top of the chart, and between linear and log scale on the price axis.
Base, pivot and buy zone
When the platform detects a base, such as a flat base or a cup with handle, it outlines it on the chart and marks the pivot, the buy point, plus the buy zone from the pivot up to 5% above it. A status label tells you where the stock is right now: near pivot, in buy zone, breakout, extended and so on. Learn more in what is a base.
Volume
Below price you will find the volume bars, colored for up and down days, with a line for the 50-day average volume. Bars far above that line show unusual interest. Breakouts should come on volume well above average. See reading volume.
RS line and RS Rating
The RS line divides the stock's price by the S&P 500 (you can switch the benchmark to the Nasdaq-100 or a sector ETF). A rising line means the stock is beating the market. The RS Rating, from 1 to 99, ranks its 12-month performance against all other stocks. Leaders usually rate 80 or higher.
Data box, EPS table and earnings markers
- Data box: price, RS Rating, EPS and sales growth, industry group rank, ATR %, up/down volume ratio and more, all in one place.
- Quarterly EPS and sales table: the company's recent growth, quarter by quarter, compared with a year earlier.
- Earnings markers: small flags on the date axis showing past and upcoming earnings reports, so you are never surprised.
Tools to work with
Use the drawing tools to add trendlines, horizontal levels, boxes and notes. Set alerts on a price, a moving average, a trendline or the pivot. When you are ready to plan a trade, the position size calculator turns your account risk and stop into a number of shares and can send the trade to your portfolio.
Key points
- Price, moving averages, volume and the RS line tell you trend, demand and leadership at a glance.
- The base outline, pivot and status show where a stock stands relative to its buy point.
- The data box and EPS table add the fundamentals without leaving the chart.
Check what you learned
Answer at least 2 of 3 correctly to complete the lesson.
1. On a Ticker&Tape chart, what is the buy zone?
When a base is detected, the chart marks the pivot (the buy point) and the buy zone that runs from the pivot to 5% above it.
2. A stock has an RS Rating of 85. What does that mean?
The RS Rating, from 1 to 99, ranks a stock's 12-month performance against all other stocks. Leaders usually rate 80 or higher.
3. You see volume bars far above the 50-day average volume line. What do they show?
The 50-day average volume line is the baseline. Bars well above it show unusual interest, which is what you want to see on a breakout.
Open the SPY chart → Try it on Ticker&Tape