As I learned how to trade stock options, it was hard for me to find a good lesson on charting stocks. In order to prevent these kind of misleading signals from appearing on our charts, whenever a 2-for-1 split occurs, we divide all of the historical prices for the stock by 2 and multiply all of the historical volume by 2 so that the bars prior to the split match up smoothly with the bars that appear after the split.
In order to fully take advantage of what the chart is telling you, you must first understand the basics of …