What is a Bar Chart?
Bar Chart
Forex Trading Glossary
Quick Answer: A bar chart plots the open, high, low, and close for each period, giving traders a clean view of volatility and swing structure.
What is a Bar Chart?
A bar chart displays price action by plotting the open, high, low, and close for each period as a single vertical bar. It delivers the same information as a candlestick but without color-coded bodies, giving price-action traders a minimalist view of volatility.
Reading Each Bar
- Vertical line: Shows the full range traded during the period.
- Left tick: Marks the opening price.
- Right tick: Marks the closing price.
- Bar length: Reveals intraperiod volatility.
When to Use Bar Charts
Switch to bar charts when you want the precision of candlesticks without visual clutter. Many professionals analyze higher timeframes with bars and drop to candles for execution.
Practical Applications
- Trend analysis: Sequence higher highs and higher lows to confirm an uptrend.
- Volatility cues: Longer bars following compression hint at breakout momentum.
- Indicator overlay: Combine with moving averages or RSI for added confirmation.
- Multi-timeframe alignment: Match daily bar structure with intraday setups for higher conviction.
Related Terms
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