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Chapter 7, Part I. Chart types. Page 2

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 15, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    2. Bar chart

    Besides just showing a close price for period like it was on line chart, bar chart also shows open price for trading period, as well as the high price and he low price. The assignment of X and Y axis are the same. The difference is only in appearance:

    [​IMG]
    4-HOUR AUD/USD BAR CHART #2

    As you can see bar shows much more information than just a simple line. First of all, the bar is a single segment of time. If you look at a daily chart and it shows, say 130-140 bars – then each bar represents a single trading day. If this is weekly chart – then single week. On 5-minute chart each bar stands for a 5 minute time period, etc. Our example is 4-hour AUD/USD chart, i.e. each bar lasts for 4 hours.

    First of all, you have to know the time-frame of particular chart that you are watching.

    This is extremely important, because it tells you the duration time of each bar on the chart. As we said, our examples here are based on 4-hour chart of AUD/USD. The phrase “4-hour” means that each bar on the chart lasts for 4 hours. It does not mean that whole price action, that showed on the chart lasts 4-hours. Take a look at chart #3. See the cursor on particular bar? Now take a look at the table in low left corner of the chart. Here is information about particular bar – time/date when it has started, letters “O, H, L and C” stands for “Open, High, Low and Close” price of this particular bar (i.e. 4-hour period). Take a note that there is no information about ending time of this bar. Why? Because each bar here lasts for the same time period, since this is 4-hour chart, so our marked bar also has lasted 4 hours. And information about prices stands only for this particular period.
     
    #1 Sive Morten, Dec 15, 2013
    Lasted edited by : Feb 10, 2016
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