Bar Chart for Graphing Stocks

Bar Chart Definition

A bar chart is the graphical representation of an underlying security's price action.  The bar contains the security's open, high and low.  A bar chart can be plotted on any time-frame (i.e. tick, minute, hourly, daily, weekly).  The bar chart is the most popular of all plotting techniques in technical analysis

Bar Chart Structure

The high of the bar chart represents the high for the trading period.  The low of the bar chart represents the low for the trading period.  The closing price is displayed on the right side of the bar and the opening price is on the left side of the bar.  See below image for an example:

Bar Chart 

Display

Most trading platforms will come with an option to display a bar chart.  While the software can display the charts, it's up to you the trader to decipher the patterns that will become profitable trades.

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