Technical Analysis
The Bar Chart
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Bar charts are some of the
most popular type of charts used in technical analysis.
As illustrated on the left, the top of the vertical line
indicates the highest price a security traded at during
the day, and the bottom represents the lowest price.
The
opening price is shown on the left side of the
bar
and the closing price is displayed on the right side of the bar.
A single bar like the one to the left represents
one day of trading. |
The chart below is an example of a bar chart for AT&T (T):
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| This chart was supplied by BigCharts.com |
The advantage of using a bar chart over a
straight line graph is that it shows the high, low, open and
close for each particular day. This is the type of chart we
will be using to display various indicators throughout this
tutorial.
There are two more types of charts that are also frequently
used for technical analysis that are similar to the bar chart.
The first we will look at is called "Candlestick Charting".
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