How To Read the
AI Powered Stock Chart Signals
This page will help you to better understand how to read and find potential trades using the StockChartsAI.com AI powered stock charts.
Remember 3 Rules
When viewing a chart, you will see Green, Yellow and Red colored candlesticks. Green candles mean the stock is experiencing upward forces an the probability is that the stock will move up. Yellow means the stocks movement is in transition - down to up or up to down. For example, if a stock is in a green zone and enters a yellow zone it can mean the stock may be getting ready to turn red and trend down or it can mean that the stock's movement is consolidating and may move higher. Red means that the stock is likely to move in a downward direction.
On some charts, you will see BIG RED down arrows, which mean that the AI is sensing that the stock might be preparing to reverse a trend. This would be a point to consider taking profits after a good up trend. Caution and / or profit taking may be warranted.
There are also BIG GREEN up arrows on some charts. These arrows signify that the AI is sensing that the stock might be nearing a bottom and can often be followed soon by a green zone on the AI powered stock chart.
On some charts, you will see small yellow down arrows, which mean that the AI is sensing that the stock might be nearing a near term top. This would be a point to watch for a small move down. However, you should understand yellow yellow arrows in a strong green chart can signal a dip and continuation move upward.
There are also small green up arrows on some charts. These arrows signify that the AI is sensing that the stock might be nearing a near term bottom. A small green up arrow after a large green up arrow may be soon followed by the chart turning green
You will also see a 3 gray boxes on the charts. The gray boxes each indicate a 20 day range where the stock has been trading. Top of the boxes can be resistance, but if a stock breaks out of the top, on heavy volume, can lead to a strong up trend. The bottom of the gray box can be price support, and if a stock breaks below the bottom of the box it can lead to a down trend.
Finally, you will see different lines on the chart. Red lines on the chart represent key price overhead resistance levels and Green lines represent key price support levels. As the price moves above the lines you will notice they turn green and red if price moves below a support resistance line.
So let's put all these colorful tools together with some examples.
SPY Example
Below is a chart of SPDR S&P 500 ETF Trust (SPY). If you look at the bottom left of the chart, you will see at the end of November 2023 that SPY was in a green zone on the AI powered. Then on March 21st, at $519 a large RED arrow appears on the chart signaling the AI senses a top may be coming. The red arrow is followed by a small yellow down arrow and the chart turns yellow. SPY then trades down to about $495 where a large green arrow appears followed by a small green arrow and the chart turns green. SPY then trades above $519 and is currently breaking out above $548.
Make sure before buying a stock you understand if it is green or red on the long term AI powered stock chart. When buying stocks betting they will go up, you will be WAY more successful if they are in a long term green zone. The long term chart of each stock is under the short term AI powered stock chart on the chart page. Looking at the SPY long term AI powered stock chart below, you will see the SPY was in a green zone (green up arrow) on the chart during both of the significant moves discussed.
CAT Example
Below is a chart of Caterpillar Inc (CAT). If you look at the bottom left of the chart, you will see in November 2023 a BIG green up arrow appears on the cat chart and then 2 small green up arrows follow. Then on December 4th, the AI powered stock chart turns green at $254. The stock proceeds to run up to $369 where a big RED top arrow appears on April 5th followed by small yellow down arrow. This would have been a great point to take profits and/ or exit. On April 26th the chart turns Red.
Below you will see CAT long term AI powered stock chart. CAT was in a long term green trend when the big move began in December.
