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Introduction to Bar Charts

A bar is the single day indication of a stock’s movement that contains the open price, high price, low price and closing price. Similar to a candlestick, the bar does not contain a real body, just a single stick with 2 appendices on either side of the bar.

The top of the bar is the daily high whilst the bottom of the bar is the daily low (the same as the shadows on a candlestick). The small appendices on either side of the bar represent the daily opening and closing price. The colour of the bar changes according to the opening and closing price.

If the stock closes higher than the opening price then the bar will be blue (or white). If the stock closes lower than the opening price then the bar will be red (or black).

Bar charts can be used to show data by the minute, the hour, the day, the week or the month however the most common is by the day.

Bullish and Bearish Bars

The bullish bar (blue bar) shows that the opening price is at the bottom of the bar and the closing price is at the top. A bullish or blue bar occurs when the closing price is higher than the opening price.

The bearish bar (red bar) shows that the closing price is at the bottom of the bar and the opening price as at the top. A bearish or red bar occurs when the closing price is lower than the opening price.

Bullish Bar

The bullish bar shows that the opening price is at the bottom of the bar and the closing price is at the top. A bullish or blue bar occurs when the closing price is higher than the opening price.

Bearish Bar

The bearish bar shows that the closing price is at the bottom of the bar and the opening price as at the top. A bearish or red bar occurs when the closing price is lower than the opening price.

Bearish vs Bullish