FNCE 2132 Chapter Notes - Chapter 3: Bar Chart, Vertical Bar
12 Oct 2017
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Important skills to learn = distinguish between patterns that represent nothing more than an interruption in the primary trend and those that signal an impending trend reversal. In order to accomplish a complete analysis of any chart = important to take both price and volume (trading activity) into consideration. Daily (cid:271)ar (cid:272)hart = represe(cid:374)ts ea(cid:272)h day"s pri(cid:272)e a(cid:272)tio(cid:374) (cid:449)ith a (cid:448)erti(cid:272)al (cid:271)ar a(cid:374)d horizo(cid:374)tal price ticks one to the left and one to the right of the vertical bar. Vertical bar = connects the high price of the day to the low price: measures the sto(cid:272)k"s daily price range. Small horizontal tick is placed to the left of the bar represents the opening price. Small horizontal tick to the right of the vertical bar represents the closing price. Price bar tells us where the stock opened (left tick) and where it closed (right tick) and the highest/lowest prices that were reached during the day (top/bottom of vertical price bar)
