Bar charts are a powerful tool in technical analysis, essential for understanding price movements over time. 📊 Here’s a simple breakdown:
Each bar represents a specific time period (like a day, hour, or minute) and contains four key price points:
1. Open: The price at the start of the time period.
2. High: The highest price during that time.
3. Low: The lowest price during that time.
4. Close: The price at the end of the time period.
The vertical line shows the range (from low to high), while the horizontal ticks on the left and right indicate the open and close prices.
By studying bar charts, traders can spot trends, understand market sentiment, and make more informed decisions. For example, if the close is higher than the open, it shows a bullish trend, and if the close is lower, it indicates a bearish trend.
Start practicing with bar charts to improve your market analysis skills!