Trading On Line - The Bar Chart

All speculative markets are governed by the law of supply and demand.Economics have proven that a fair market will determine the equilibriumpoint between the supply and demand of goods or services.

This equilibrium point is the price where buyers and sellers agree on a valueof the product being traded.

The price of a stock or future is constantlychanging.

This price movement, also known as market action, is oftenrepresented by a simple bar chart that provides five different statisticsfor the market that it represents: open, high, low, close price, and therange of market movement fur that day.The bar chart represents the war that is fought between buyers andsellers (bulls and bears). If the market closes up from the open, thehulls have won.

If just the opposite happens, then the bears are the victors.The range of the bar chart represents the battles that were foughtduring the day. If the price of a stock advances by one point, that stockwas worth an extra point in price.

A collection of the latest bar charts of a certain market gives a longer term view of the supply and demand for that underlying market.

Market technicians believe that future prices of a slock or future can be determined by following the map of supply and demand that is portrayed by the bar chart.

If one can master the art of proper chart interpretation and uncover the law of supply and demand,it can lead to profitable trading.

                       Welcome to the exciting world of Trading On Line