Original subtitles

One of the most important things to learn is understanding price bars, how is price represented graphically,

visually?

So you can get charts.

You can start identifying and you can start using it.

So using indicators to make decisions, you can think of the kind that concept of a picture is worth

a thousand words, less idea where price buyers are going to represent things.

As far as what's happening with an individual security.

And there's several different types of price points are going to learn about them all, you know, but

they're the key building block and some are real powerful, like a candle Sepah.

We have a whole section, just candlesticks, because they're such a powerful way of representing things

in a price bar.

But as basic foundational price power to represent price as a basic basic core level, the key one to

kind of start with and then can grow from there are what are called HLC price bars, or they stand for

open, high, low and close, you know, pretty simple.

So if we look at, let's say, this price bar on this graphic here, you can see on the left is the

prices going up and down and time going from left to right.

Go farther back in time has left more recent times to the right.

As prices go across, you'd see that represented on a chart.

But if we think of price just in the price bar aspect, you can see this like straight line up and down

and it's got to tick marks, one to the left and one on the right.

Let's that virtually came across the camera.

But you can kind of see on the idea that there's one on the left and on the right and one in the middle

here.

And basically the if we were looking at this particular priced bar, any price bar, you can see that

it has a high and a low.

That's its trading range.

So let's see if this was a daily price bar deal or each open, high, low, close.

So for the day, we can see that the prices fluctuate between a low and a high.

Now, we can also see from this price per hour tells us even more information.

We can see what the price was at opening when the markets open and they rang the bell and the markets

open, people could start trading.

This was the first or opening price.

You can see where that Tegmark bar is on the left there.

And you can see that this might be a little bit closer to the low in this example.

It doesn't have to be, but in this example it is.

And then the trades through the day in the high and low and then on the right, you see another tick

bar.

That's the closing price.

That's what it ended up at at the end of the day.

So that was the last price that was traded in that trading day.

We can look at that high and low.

The difference between the high and the low, by the way, is the trading range, the range of prices.

And so prices didn't go above the high price to then go below below there within that trading range

there so that you can see the name of it open, high, low, close.

Pretty pretty simple, right.

So if we look a little bit closer that if we see an opening, it's above the previous day's close,

that might be an indicator that a maybe a price increase is coming, that we want our security prices

to rise.

Right.

If we're buying, we want them to rise.

So if they are opening before, you know, above a previous this close, that can be an indicator that

prices might be rising.

The opposite of that would be if it goes below the previous day, close, that may be a price decreases

coming, though I wouldn't trade just on that.

We have a lot more than that.

But that's the general idea as far as, you know, looking at an opening versus a closing.

But a lot of people don't put a lot of stock in openings.

I will tell you whether we put more emphasis on the closing price.

That's more important.

That's the most important is it's really kind of a summary of the trader sentiment for the sentiment

for the D right.

It can open at anything.

But at the end of the day, after we had the highs and lows in this whole trading range, at some point

there's trader sentiment and it closed.

The last price today was the closing price.

And that was where the trader sentiment had.

And that's where a lot of people will buy and sell right towards the end of the day to close positions

or kind of lock in where they want to be.

And they're deciding, you know, do I want to hold this security overnight or two, which might be.

Yes.

Which might be a positive sign, or am I selling it more and driving the closing price down?

Because, no, I don't want to hold over overnight because I, I don't believe in it as much or whatever.

So it's been a real microcosm of just the day you can kind of get this feel for what sentiment might

be within that daily thing and then whatever it opens up the next day.

Well, that's an opening at that point.

But you can get a good feel for the closing prices.

And that's why when a lot of people are looking at prices and trends, they're really looking at closing

prices as far as using mathematics or some of the things we'll learn about when we're looking at averages

and stuff, they typically use a closing number versus, let's say, an opening number.

If the closes, let's say now we're looking at now we want to say, well, how can we use this in a

simple price bar if the closes higher than yesterday's close?

So it's closed here yesterday and today it closed at this.

And then what might be happening for tomorrow?

You know, if they're closing high, higher day after day, that means there's more demand for that,

that particular security and people are willing to pay higher prices for it.

So that's, you know, pushing the security up.

And that would indicate really kind of a good buying trend.

Right, because the cosies keep going high, you know, so it's a strong buying signal.

It's the.

Close is the high of the day, if the actual peak of the day is the actual close, it comes real close

to that high of the day in the trading range.

That means that people are really buying at the peak right up to the last minute and they want to carry

it overnight.

So they're really like, I want to get in and I want to buy up there.

So that can be a real strong indicator when you have your clothes near the high of the day in that training

range, if the clothes is lower than yesterday's clothes, kind of same thing by the opposite, you

know, do you have today less demand and people are willing to sell and they're willing to sell at lower

prices.

You have more of a selling trend versus a buying trend.

So you can look at those closes as far as looking at trends.

And we'll be learning how to draw chart lines and trend lines and all sorts of stuff so we can kind

of graphically represent this.

But that concept of higher highs, as good as first buying and lower lows might indicate selling.

And that can be represented here with different sentiments like, you know, if you have, let's say,

the price bar on the left, that might be considered a bearish or a, you know, a downward type of

sentiment where we have our normal, high, low range.

But you can see how the opening opened up pretty high, but then the closing was way down more towards

the low part of the range and the close was below the opening.

That would be a bearish or sale sign in a single day price, you know, looking at price.

But if you look at the one on the right, you can see where it opened lower and it closed up higher.

So that could be more of a bullish thing.

Actually, if you were looking at more tech bars that probably represent bullish would be more of a

black line or green line versus red line.

But, you know, you get the idea here where it opens lower and closes higher is the idea of something

that would be bullish.

Looking at opening and closes now the daily open haloes course, you also want to consider that high

in the low to what was the highest trade of the trade of the day.

What was the highest price of that trade in effect.

And the relationship to the previous day's close and high is important as well.

When you're looking at a series of prices over, let's say, a chart, same thing.

The lowest trade is the lowest trade or the low is the lowest trade of the day.

And you're looking at that relationship to other bar parts like the opening in particular or a lower

open may mean that they may be factoring in, you know, new stuff or trending lower, you know, so

you're looking at that range of price bars.

So the pricing, you know, price bar can take quite a bit in the trading range.

Can tell you quite a bit, too, is how big is the difference between that high and low bar is a real

short difference between the high and lower.

So a really long vertical line going up and there's a wide range of prices that things are being told

that.

So you want to compare that in relation to maybe other price bars that are proceeding.

And you can start seeing that if there's a small range in the sea of larger ranges, you know, where

all of a sudden the price where you're looking at for the most current day or most recently or time

period, whatever that is, you can see that would be a day.

You can see that, you know, maybe the ranges are getting smaller, then there might be some indecisiveness

happening.

You know, they're trying to figure out, do we go higher, do we go lower?

Looking at that trading range, same thing.

If the lower interest is large in the sea of smaller ranges, you know, obviously doing small, small,

small as far as a high and low range will get really big that, you know, big wide range that might

tell us that event or something is happening.

People are trading more actively.

There's a lot more interest in this particular security.

So something that might be changing could be going up higher.

It could be going up lower.

But it's an indication with trading range that something might be happening.

And you can also linked that to the volume.

How much trading is going on to because of trading ranges, just looking at the price where volume is

looking at the actual number of actual trades happening together, they give you some good indications.