Log In Sign Up Help. Opening price mid-way up the bar indicates that neither party has control. With this convention, it is possible to have a black price bar with the close being lower than the open.
Tick marks project from each side of the line indicating the opening price e. The bars may be shown in different hues depending on whether prices rose or fell in that period.
A simple variant on the OHLC chart is the HLC high-low-close chart that identifies the range of the time unit's price action high - low and the end result of the time unit's price action the close.
In technical analysis OHLC charts are often combined with charts of other types such as line charts showing moving average , column charts trading volume , and range areas Bollinger Bands. Visit the main overall explanation for Technical analysis that is translated into many languages.
From Wikipedia, the free encyclopedia. This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. January Learn how and when to remove this template message. Technical Analysis for Dummies , 3rd Edition. Breakout Dead cat bounce Dow theory Elliott wave principle Market trend. The eagerness of buyers and sellers is indicated by the position of the closing price in relation to the close on the preceding bar.
The larger the distance - the greater the eagerness. The range is the distance between the high and the low on a bar. The position of closing price on the bar indicates who controls the market at the end of the day, and their level of commitment. The daily opening price tends to reflect the view of smaller buyers and sellers.
It is useful as an indicator of the emotional direction of the market. Conflicting signals show indecision and a weakening trend. Be on the alert for a trend reversal, but remember the Golden Rule: Never assume that a trend has ended until there are clear signals that the opposite trend has started. Manage risk and improve your market timing with Colin Twiggs' weekly review of macro-economic and technical indicators.
More than , subscribers - Read it now. We do not spam. Join our free Trading Diary mailing list with over , subscribers. If today's close is lower than yesterday's close - the bar is colored red. If today's close is equal to yesterday's close - the bar is colored the same as yesterday. Interpreting Bar Charts Your first step in interpreting a bar chart is to identify the direction of the trend. Identifying the Trend The trend is determined in accordance with Dow theory.
When does a Trend Start and End? When is a Trend Uncertain? Inside days have a lower high and a higher low when compared to the preceding bar. Outside days have both a higher high and a lower low than the previous day. Borderline days are similar to inside or outside days - except that there is an equal high or equal low.
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