Reading Stock and Future Charts
OverviewThese candles and bars show how price moves over time. This is done by putting these next to each other with newer prices to the right of the older ones.
AThe bar gains during the day (it's bullish). Note: the color is not necessarily blue, it may be black or greeen. The price opens in the morning at the bottom of the rectangle and closes at its top. Price moves above the close and below the open during the day's activity.
B The price moves lower during the day (it's bearish). Price opens in the morning at the top of the rectangle and closes at the bottom. During the day trading puts the price above and below this range.
C and DThese bars work the same as the 'A' and 'B' candles but the open and close are represented by small horizontal lines
SummaryA stock or futures chart will have either bars or candles at the top part of the chart. This tells you how price moves over time. One can think of the price as the "result" of a certain amount of "effort" created by the volume of the shares traded (see the next page).