Definition of Charting

Market variables such as stock prices, market averages, commodity prices, trading volume, interest rates etc. are mathematically plotted on a graph in order to spot trends and also predict future values of these variables. Technical Analysts rely heavily on charting because they believe that all factors are factored into the stock price. Technical Analysis is based on the art of charting because analysts can then evaluate short-term trends, keep sight of the traded volume, volatility of a particular stock or the market as a whole and make decisions based on the values visible in these charting tools.