How To Compare Multiple Stock Charts

A simple way to analyze stocks is through a method called pair trading, or comparing related company/index stock charts.

While it seems like a relatively simple idea, the theory behind this is essentially seeing how one security moves dependent on another. For example, what would happen to an oil based security as the price of crude oil increases?

Obviously, we could put these two charts side by side, but with ranging scales and prices it would be whole lot easier if we could just overlay securities on top of each other.

By using a free service, such as SharpCharts over at StockCharts.com, we can easily compare up to 4 securities.

Steps to comparing multiple stock charts.

1. First enter the base stock or index you want to chart.

2. In the parameter options below, choose “Price” from the drop down box and then insert your ticker symbol in the corresponding field. Make sure to also select “behind price” in the position drop down box.

You can add up to 3 securities using this method, which is 4 all together.