What is a Bar Chart?

What is a Bar Chart: A type of chart visualization that represents price movement over time for a stock, ETF, or other market/instrument. Commonly used in financial technical analysis.

Category: Type of price chart

How is a Bar Chart Used: Bar charts are used by financial traders, investors, and technical analysts to view the movements of market prices over time. Typically, chart indicators and drawings are overlaid on a bar chart to help analyze trends and patterns of price movement. Bar charts are often used to identify trends and help make decisions on trade entries and exits.

What Does a Bar Chart Consist of: Usually, modern bar charts use the Open-High-Low-Close (OHLC) format to depict four different pieces of price information in each bar. The left horizontal stem represents the open price of the bar. The right horizontal stem represents the close price of the bar. And the middle vertical line has the highest price of the bar at the uppermost point and the lowest price of the bar at the lowermost point.

Each bar represents a concrete time period. For example, a daily bar chart will have each bar representing one trading day of price movement, with the open, high, low, and close of the bar visually depicted as described above.

What Does a Bar Chart Look Like:

Bar Chart
Bar Chart – Source: TheTechnicals.com and TradingView

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