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The Logic of Reading Bar Charts
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Book Chapter
The Logic of Reading Bar Charts
2013
Overview
This chapter discusses the logic of reading bar charts. Powerful knowledge comes from repeatedly observing the story of the lines and the price/volume behavior together. When studying a bar chart, we go through a process of sequential evaluation. This normally consists of comparing the immediate price movement with the most recent price bars. From this comparison, we make deductions or inferences about what to expect in the next time period. Of course, we are always faced with the realization that anything can happen. The market we are watching can gap sharply higher or lower because of unexpected news events. These are the extremes of the probability curve but they must be accepted by anyone who ventures into speculation as part of the territory.
Publisher
Wiley,John Wiley & Sons, Incorporated,John Wiley & Sons, Inc
Subject
ISBN
9780470487808, 0470487801
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