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What is a Bar Chart?

 

A bar chart in the financial world highlights the same five pieces of information that candlestick charts do, but in a different way.  By visually depicting the opening and closing prices, the high and low prices, and whether there was a gain or loss, bar charts are a quick and easy reference to identify performance and more importantly, trends within a security or market’s price.

 

The main difference between a bar chart and a candlestick chart is the depiction of the open, high, low, and close.  On the bar chart, the open and close prices are indicated by horizontal lines on the left and right sides of the bar, respectively.  The top of the bar indicates the high price, and bottom of the bar indicates the low price.