How Stock Bar Chart Works

In previous page we have shown you a blank bar chart. It is time to show you how the bar chart record the stock price and sale volume.

How Prices are Marked Down on Bar Chart

The prices on bar chart will be recorded down on the upper portion of the bar chart. The prices will include:

  • The highest price of the traded period
  • The lowest price of the traded period
  • The closed price or last price of the traded period.

How Volume are Marked Down on Bar Chart

The total number of shares of the traded period will be recorded down on the lower portion of the bar chart.

Time Scale of Bar Chart

The bar chart can be a Hourly Bar Chart, or a Daily Bar Chart, or a Weekly Bar Chart, or a Monthly Bar Chart, or a Bi-monthly Bar Chart or even a Yearly Bar Chart. Actually the time scale can be any scale, depending on how you would like to analyse the trend.

If this is a daily bar chart, the time interval is one day. then the prices will be marked down:

  • the highest price of the traded day
  • the lowest price of the traded day
  • the closed price of the traded day.

If this is a weekly bar chart, the time interval is one week. then the prices will be marked down:

  • the highest price of the week
  • the lowest price of the week
  • the closed price of the last traded day of the week (or the last price of the week)

If this is a monthly bar chart, the time interval is one month. then the prices will be marked down:

  • the highest price of the month
  • the lowest price of the month
  • the closed price of the last traded day of the month (or the last price of the month)

Example 1

This is the stock trading information of ABC Company on day n:

  • Lowest price: $10.00
  • Highest price: $30.00
  • Closed price: $25.00
  • Total number of shares traded: 20000 shares

One Response to How Stock Bar Chart Works

  1. latinas says:

    Greeeeeeeeat Blog Love the Infomation you have provided me .

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