How to Read Bar Stock Charts

Video Transcript

"Are you an investor that relies upon charts to help you make investment decisions? This is Roger Groh at Groh Asset Management and today we're here to talk about bar charts, what they are, how you can use them and how they would differ from other types of charts such as candlestick. Well a bar chart is really a candlestick chart without the body. Within the bar chart itself, they will show the opening price, the closing price and the highest price the stock traded at during that day and also the lowest. When you start combining multiple bars, you can so say the theorists, spot trends. Whether it's upwards trends or downwards or reversals or tops or whatever it is that you use in terms of charting stock activity. Maybe the most valuable of any bar chart though is going to be on the very bottom. That's volume and within volume coupled with share price movement, you get a general sense of whether it's a small group of investors driving share prices or whether it's a very broad group. Generally bigger is better. So I hope that helps, I'm Roger Groh at Groh Asset and may the bars be with you."