Chapter 6
Reading Basic Bars: How to Pounce on Opportunities
IN THIS CHAPTER
Seeing information in dots and lines
Interpreting trader sentiment from a single bar
Identifying trends 101
Applying bar reading in real time
The standard bar seems so basic and ordinary — it depicts the open, high, low, and close — but bars contain more information than you might think. Reading price bars is the perfect application of the saying “Actions speak louder than words.” Traders may say that the price is going up, but the price bar tells you what they really think by showing you what they actually do. This chapter gives you the basics on how to read standard bars.
The standard bar I talk about in this chapter isn’t the only bar notation method out there. There are also the tick bar, momentum bar, point-and-figure bar, and most importantly, candlestick bars. I describe each of these later in the book. The candlestick bar (see Chapter 8), which came on the scene only 30 years ago, has zoomed to the top of the popularity rankings and is likely used by at least half of the technical analysts working ...
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