| The Charles Schwab is a savings and loan holding company. Through its subsidiaries, Co. engages in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. Co.'s two segments are: Investor Services, which provides retail brokerage, investment advisory, and banking and trust services to individual investors, and retirement plan services, as well as other corporate brokerage services to businesses; and Advisor Services, which provides custodial, trading, banking and trust, and support services, as well as retirement business services, to independent registered investment advisors, independent retirement advisors, and recordkeepers. |
When researching a stock like Charles Schwab, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from SCHW Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for SCHW stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the SCHW 200 day moving average ("SCHW 200 DMA"), while one of the most popular "shorter look-backs" is the SCHW 50 day moving average ("SCHW 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Charles Schwab. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the SCHW 200 DMA and the SCHW 50 DMA, we get a moving average convergence divergence indicator ("SCHW MACD"). The SCHW MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart).