A bar chart is a graphic representation of the actions of prices using a vertical bar to connect the highest price during a specified period to the lowest price. The markets opening price will be displayed by a horizontal line that is on the left side of the chart and the closing price will be indicated by a horizontal line to the right side. The most widely used time intervals for creating a bar chart is the hour. However, since real time prices are easy to obtain, some people prefer to use smaller time intervals that range from one minute to thirty minutes.
Standard bar charts are a common way for price activity to be displayed on a chart that can be easily read. There are usually four different elements that combine to create a bar chart, the Open, High, Low and Close for any specific trading session or a chosen time period. The user can represent any time frame on the chart from one minute to one month. The entire trading range for the chosen period is indicated by the total vertical height or length of bars on the chart.
