A traditional bar chart contains bars that represent price action from period to period. Each bar is basically a vertical line that shows the difference between the high and the low of the period. The top of the bar is the high and the bottom is the low. The distance between the two is similar to the wick of a candle on a candlestick chart. (The wick is discussed more in Chapter 1.) The finishing touch on a bar chart is a little notch on the left of the bar that's made to mark where the security closed. Figure 2-6 is a single bar that normally appears on a bar chart.
Figure 2-7 is a chart of the same data that appeared in the line chart in the previous section (Figure 2-5).
Bar charts have been the industry standard for some time, but are quickly being replaced by candlestick charts. When the Wall Street Journal starts using a new charting convention (as it has with candlestick charts), the convention is considered to be the industry standard.
A single bar from a bar chart. Low
A run-of-the-mill bar chart.
Was this article helpful?