How to analyze stocks quickly using the Stock Price Change API and how this API endpoint can help you in your trading

If you're interested in how stocks are doing over different time periods, the Stock Price Change API from Financial Modeling Prep can be a handy tool. Here's how you can use it and what kind of analysis you can do with the data it provides.

What is the Stock Price Change API?

The Stock Price Change API gives you data on how stock prices have changed over various time frames. You can get this information by using FMP's Stock Price Change API Endpoint. Here's what the data looks like:

[{

"symbol": "AAPL",

"1D": 0.5908,

"5D": 0.79365079,

"1M": -0.6654855,

"3M": 1.33574,

"6M": 20.99695,

"ytd": 23.82568,

"1Y": 21.11808,

"3Y": 46.59142,

"5Y": 245.20198,

"10Y": 681.87075,

"max": 178996.22127

}]

How to Use the API

1. Get an API Key. First, you need to sign up on the Financial Modeling Prep website to get your API key.

2. Make an API Request using your web browser to see the data or you can fetch the data in your custom web-based application. Use the API endpoint like this:

https://financialmodelingprep.com/api/v3/stock-price-change/AAPL?apikey=YOUR_API_KEY

- Replace "AAPL" with the stock symbol you're interested in.

- "YOUR_API_KEY" should be your actual API key.

You can also use the Financial Modeling Prep Playground. In the search bar inside the Playground, type "Stock Price Change” and see the stock price change. You can export the data into text, JSON, or CSV formats.

3. Receive the Data. After making the request, you'll get JSON data similar to what's shown above.

What Can You Do with This Data?

Here are some ways investors can analyze this data:

Short-term Trends.

- 1D, 5D, 1M. If you see a big jump or drop in these short periods, it might mean the stock is reacting to recent news or events. This can help decide if it's a good time to buy or sell quickly. This can also help you spot great short-term buy ideas if the stock is strong fundamentally but declined in the past 5 days, for example. It can help you find stocks trading cheaper and stocks that look attractive because of the price drop.

Medium-term Insights.

- 3M, 6M, YTD, 1Y. These numbers show how the stock has been doing over a few months or a year. If the stock has been going up, it might be in a growth phase. If it's going down, you might want to look into why.

Long-term Analysis.

- 3Y, 5Y, 10Y, Max. These give you a view over years or even the entire history of the stock. It's great for seeing if a company has been a good long-term investment. And spot companies that trade with gaps or have large price fluctuations in their trading history. Those stocks tend to be more risky as they react more aggressively to the news.

Investment Decisions.

- If short-term numbers are high but long-term growth is low, the stock might be overvalued. This could be a signal to sell or wait for a dip to buy.

Portfolio Review.

- Check how your investments are doing over different periods to see if they align with your investment strategy, whether it's growth, income, or stability.

Market Comparison.

- Compare different stocks or even the stock against market indices like the S&P 500 to see if it's outperforming or underperforming.

Using the Stock Price Change API, you can gather a lot of useful information about stock performance. By looking at how stock prices change over different times, you can make more informed decisions about when to buy, sell, or hold stocks. Remember, this data is just one piece of the puzzle. Always consider other factors like company news, industry trends, and economic conditions before making investment decisions.