Bar Chart
Bar charts consist of multiple price bars, with each bar illustrating how the price of an asset or security moved over a specified time period. Each bar typically shows open, high, low, and closing (OHLC) prices, although this may be adjusted to show only the high, low, andclose (HLC).
Definition: A bar chart is a type of chart used to display the price movements of an asset or security over a specific time period. Each bar represents a time period and typically shows the open, high, low, and close prices (OHLC), although it can be adjusted to show only the high, low, and close prices (HLC).
Origin: The origin of bar charts can be traced back to the early 20th century, initially used for stock market analysis. With the development of computer technology, bar charts have become an essential tool in technical analysis.
Categories and Characteristics: Bar charts are mainly divided into two categories: OHLC bar charts and HLC bar charts. OHLC bar charts display the open, high, low, and close prices, suitable for scenarios requiring a comprehensive understanding of price movements; HLC bar charts omit the open price, suitable for focusing on price ranges and closing prices. The characteristics of bar charts are intuitive and easy to read, clearly showing the trends and fluctuations in price movements.
Specific Cases: 1. Suppose a stock has an opening price of 100 yuan, a high of 110 yuan, a low of 95 yuan, and a closing price of 105 yuan in one day. Using an OHLC bar chart, one can clearly see the price movements of the stock throughout the day. 2. In the forex market, traders can use HLC bar charts to analyze the price fluctuations of a currency pair over a week, thereby formulating trading strategies.
Common Questions: 1. What is the difference between a bar chart and a candlestick chart? Both bar charts and candlestick charts are used to display price movements, but candlestick charts also include a body part, which can more intuitively show price rises and falls. 2. How to choose between OHLC bar charts and HLC bar charts? If a comprehensive understanding of price movements is needed, choose OHLC bar charts; if focusing only on price ranges and closing prices, choose HLC bar charts.
