The Importance of Creating a Bar Chart for Technical Analysis

The Importance of Creating a Bar Chart for Technical Analysis

Technical analysts use charts as an important tool to make profits. So, before we get to the point of learning to read charts, find different patterns Must first understand the basic principles of chart creation.


You've probably seen the technical analysis chart before, and you'll see that it consists of Multiple horizontal perpendicular bars Each bar is not the same size. These bars are actually a statistical representation of the price that occurred over a period of time. One time period (for example, a day) is represented by one bar. This bar is called Bar, so this technical diagram Sometimes we call it Bar Chart.

Length of each bar It depends on the range or the range of the trade. From the highest price to the lowest price, so if that day the price is high or very high, the bar will be long, indicating that the market has a strong swing that day. But if that day, the market seeps not very flashy We will find that the bar is a little short. And if all day trading, it's at the same price. (or all day, just one trade) the bar will become a point. Because the highest and lowest prices are the same

The closing price is also displayed on the bar. Shown as a lobe on the right-hand side of the bar. To help us see and know that Today's closing price is close to the highest price. Or closes near the lowest price. In addition, the opening price is displayed as a bulge on the left-hand side. So that we can see how the opening and closing are different. What is shown in one of those bars It can give us a lot of information and it's easier than looking at the raw data. And when these bars are arranged by trading day, we get a Bar Chart, which can tell us a lot more.


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