Forex Chart Type : Bar
Bar chart is one of the most popular pair and chart form and is the most used chart before the introduction of candle chart. The bar chart is drawn on a chart that plots the time on the horizontal axis (x) and the price level on the vertical axis (y). This chart provides more information than a line chart as it consists of a series of vertical bars showing various pricing data for each time frame in the table. This data can be Open, High, Low, Close and Close prices, making it a OHLC bar chart, or a high price, low price and closing price, making it a HLC bar chart. The height of each bar of OHLC and HLC shows the price range for that period with the highest price at the top of the bar and the lowest price at the bottom of the bar.
Each OHLC and HLC bar has a small horizontal mark to the right of the bar to show the closing price (Close) for that period. The OHLC bar also has a small horizontal mark to the left of the bar to show the opening price (Open) for that period. This additional information (open price) is one reason why OHLC charts are more popular than HLC charts.
In addition, some charting apps use color to indicate bearish or bullish on the bar in relation to the previous bar closure. This makes the OHLC bar chart very similar to the candlestick chart. What is slightly different is that the OHLC chart does not indicate bullishness or bearishness in a single bar period as clear as the candlestick chart (OHLC bar color always in relation to the closure of the pervious bars rather than the opening and closing of the current bar).
Most bar charts contain a bottom panel that plots the total volume traded for a certain period. This section of the chart has a separate scale on the vertical axis to describe the volume level. It also consists of a typical vertical trunk.
Bar Chart Pattern
The OHCL bar chart also illustrates some simple trend reversal patterns consisting of two to three bars. These include key reversal, inside bar, and outside bar. In addition, bar charts can also track complex graph patterns, such as Head n Shoulders patterns, which are repeated regularly.