The European debt crisis and worries about global economic growth have created a great deal of uncertainty in the stock markets around the world. With that being said, how do you find thetop stocks amid such uncertainty?

To invest in this type of an uncertain environment, it is important that investors conduct thorough analysis before making any investment decisions. At Barchart we recommend the use of stock charts for improved analysis to find the top stocks. In this article we will focus on one of the most popular methods in stock chart technical analysis. Stock charts are easily available online at several websites.

For technical analysis of a stock there are several methods that are used by traders and investors. Among many indicators, probably the most regarded is the concept of moving averages. With the help of moving averages, you can consistently find top stocks.

Moving averages are ascertained by various methods, however, their fundamental purpose remains the same: To facilitate technical traders and investors in spotting trends of financial assets by removing the volatility in data. In other words, the price fluctuations are removed.

By recognizing market trends, moving averages let traders make those trends work in their favor and thereby increase the chances of finding the best stocks.

Among the most widely accepted technical indicators, moving averages are used to determine the direction of the current trend. Every type of moving average number is a mathematical result that is arrived at after calculating the past data points and reaching an average. Once calculated, the resulting average is then entered into a chart that helps traders look at smoothed data rather than focusing on the day-to-day price fluctuations that are natural in all financial markets.

Apart from moving averages, online stock charts offer tons of information to investors, which can be used to gauge the market conditions. Let us take a look at some of the indicators investors can use to make sound investment decisions.

Through stock charts, an investor can find the stocks that have hit an all-time high or stocks at 52-week low, percent advances, percent declines, and volume leaders among others. All of these tools aid investors in learning more about the market conditions. For example, if there are a number of stocks at 52-week low, then the market sentiment is bearish.

Now that we have established how stock charts can help to improve analysis, we can focus on how Barchart can help you pick the top stocks. Every day, analysts at Barchart scan the markets for trading opportunities and alert traders with their promising finds on the featured Chart of the Day. Visit www.barchart.com today.

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