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Read a Bar Chart

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Bar Chart

Bar Chart

Bar charts are one of the two most popular trading charts, because of the range of trading information that they represent, and their ease of reading and interpretation.

Bar charts consist of an opening foot, a vertical line, and a closing foot. Each bar includes the open, high, low, and close, of the timeframe, and also shows the direction (upward or downward), and the range of the timeframe.

Bar charts are read and interpreted during trading as follows (view full size chart):

Difficulty: Easy
Time Required: 5 Minutes

Here's How:

  1. Open - The open is the first price traded during the bar, and is indicated by the horizontal foot on the left side of the bar. In the example chart, the opening foot is colored blue.
  2. High - The high is the highest price traded during the bar, and is indicated by the top of the vertical bar. In the example chart, the vertical bar is colored green or red.
  3. Low - The low is the lowest price traded during the bar, and is indicated by the bottom of the vertical bar. In the example chart, the vertical bar is colored green or red.
  4. Close - The close is the last price traded during the bar, and is indicated by the horizontal foot on the right side of the bar. In the example chart, the closing foot is colored yellow.
  5. Direction - The direction of the bar is indicated by the locations of the opening and closing feet. If the closing foot is above the opening foot, the bar is an upward bar, and if the closing foot is below the opening foot, the bar is a downward bar. In the example chart, the upward bars are colored green, and the downward bars are colored red.
  6. Range - The range of the bar is indicated by the locations of the top and bottom of the bar. The range is calculated by subtracting the low from the high (Range = High - Low).

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