chart analysis for beginners

The first thing we notice when we look at PRR's chart over the last 20 years is that the price of the stock goes "up and down".

Now I have drawn a straight line horizontally across the chart just incase some posters on here want to debate the fact that the price of the stock does not go "up and down"

If you hold PRR shares or any other speculative shares on the asx there is a very good chance that the price of the stock will go "up and down".

Now I don't want to cover to much ground on this first post but I would like to add that the further the price of a stock goes "up" the further the price of a stock is likely to go "down" and visa versa,(not in all cases though) we will refer to this as v o l a t i l i t y.

I hope this helps anyone who was caught out in the last few days with the price of the stock going "down" because remember before it went "down" it went "up" and when you look at the chart it is not the first time this has ever happen, but reading the PRR thread today,one may get the impression it is the first time.

Obviously if you understand this basic market action please disregard this post, I hope this helps, all in good fun,thank you :)