| The High-Low-Close bar chart is an old stand by that was the next level of charting after the Line Chart. |
The total length of the line, per period shown which is
usually a day, represents the total range of trading value for that period shown.
The stub to the left is where the trading began, (open), and the stub to the right is
where the trading ended, (close).. |
| The trick to reading these easily and quickly is to simply read the individual period bar from left to right. The stub on the left again shows where the trading began and the one on the right shows where it closed. Therefor if it closed "up" for the period, your reading will move your eyes from lower left to upper right. However if it traded lower during the period, your eyes will shift from upper left to the lower right. And of course there would be no elevational change in the two stub lines if there was no increase or decrease in value between the open and close during the period. |
| Candlestick charts are MUCH easier to read and provide the same information in a blink of an eye. With their more graphical impression using light and dark candles to imply up and down moves, one is able to perceive the attitude of the trading more quickly. |
| As with any charting or representation of information or data, the time involved could be representing a single minute or many years. In general, most charts will be plotting the price movements of securities on a daily basis, but you must be careful NOT to assume anything when it comes to analyzing financial concerns as a mistake could be costly. |