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Fire Your Stock Analyst!: Analyzing Stocks on Your Own by Harry Domash

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Chart Types

Most sites offer the option of viewing a price chart in two formats: line or bar chart. A line chart consists of a line connecting the closing prices.

A bar chart (Figure 14-5) uses a vertical line (bar) to represent one period. The bar period is typically a day, a week, or a month, depending on the time span covered. The top of the bar is the highest price for the period, and the bottom is the low. A horizontal extension to the left represents the opening price, and an extension to the right shows the closing price for the period.

Figure 14-5. Jones Apparel bar chart. Each bar represents one day. Chart from BigCharts.com (www.bigcharts.com).

Line charts are best for viewing long-term trends while bar charts ...

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