Technical Analysis Charting

Bar charts simply represent the open, the close the high and the low of a stock’s price. Bars on a trading chart are represented by vertical lines that show the difference in price action that occurred within a specific time frame.

While bar charts have been the industry standard, the popularity of this type of charting method has waned while Japanese candlestick charts have increased in popularity. Stock Market For Beginners School is dedicated to teaching a simple yet effective method of understanding the stock market.

And as we continue to do this, we have provided an example of how to understand technical analysis charting using an illustration of a bar that has traded from open to close.



In this example, ABC stock opened at $15:05

ABC stock proceeded to trade down to a price level of $14.97. In stock market terminology this small drop in price can be referred to as a jig.

ABC stock then commenced its move higher and traded to the high of the day, which was $15.75.

Profit taking occurrs as traders eased their way out of the stock and the stock experienced another slight slip in price and closed at $15.45.

Using the example above a trader could have made a profit of $0.30-$0.60 depending where the trader entered their trade and exited their trade..


This is the clearest example of a bullish bar in a stock.




The same example can be used if a stock is trading in the opposite direction.


If market traders are short the stock, then you would assume that the stock opened at $15.45, experienced a jig, trading up to $15.75 which would be considered the high and then proceed to trade down to $14.97, which would be a $0.30-$0.60 gain in the direction of the stock trend.

Below is an illustration of how the stock traded in the short direction.

• Technical Analysis Fundamentals : Understanding The Stock Market using Candles
• Technical Analysis Explained : Interpreting Stock Market Language
• Technical Analysis Charts : Psychology of Candlestick Charts

• Stock Market Basics: Bar Charts
• Stock Market Basics: Line Charts
• Technical Analysis Charting: Japanese Candlestick Charts