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THE MARKET WHISPERER 10 7
use by investors. Note that I used the term “investors” and not “traders.”
On a bar chart, every vertical bar represents price behavior for a specific
timeframe, as follows: the uppermost extreme of the vertical bar indicates
the highest price for the specific time unit (HIGH), and the bottom point
indicates the lowest price (LOW). The small horizontal mark on the left
shows the start price (OPEN) and the horizontal on the right shows the
(CLOSE) price
Let’s say that the bar chart above indicates price changes of a stock over
one day: its opening, highest, lowest, and closing price for one day. Because
the closing price is higher than the opening price, we understand that we
are looking at a chart showing a day in which the price rose.
How do you think a chart showing an overall drop in price would look?
This is how:
