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Chapter 7, Part I. Chart types. Page 4

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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    And the last but not least is the close price. The small horizontal dash line from the right side of the bar shows close price of particular trading period. On our chart#3 “C” stands for “Close price”. It shows the price of the last trade that has happened on the market since starting of this period. Our 30-minute bar ends at 15:30. Assume that last trade before 15:30 has happened at 15:29:58, so this is the close price of current bar. And again, this is not the quote that was on market at 15:30, this is the price at which last real trade has happened in 15:00-15:30 time period.

    Sometimes, you can meet bar charts without an open price, so there will be no dash from the left side. This is normal, because open price is rarely used in technical analysis as opposed to close price. Close price always will be on the chart, because it exceptionally important.

    #4 Examples of bars
    [​IMG]
    So, now you understand how to read bar charts and now I just want to show you the same bar chart, where I link all bars close prices with the line. Just compare this chart with the #1 linear chart, what do you see? Yes, the lines on both charts are the same:

    #5 Line, that links close prices of each bar is the same as a simple line chart:
    [​IMG]

    Now, when you know about existing of high price for the period, and low price you should know that you also can build a line chart not only by close prices, but by any other as well. Most types of modern charting programs allow you to do that. So, you can draw a line chart by open prices, by highs or lows.

    Sometimes bar charts are called “OHLC” charts, or “HLC” (as we taked about possible absence of Open price).

    Also, if you will meet word “BAR” later in our study, treat it as a single piece of data on the chart.
     
    #1 Sive Morten, Dec 15, 2013
    Lasted edited by : Feb 10, 2016
    Hamza Samiullah and fran alvarez like this.
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