The price bar is the basic building block of technical analysis. You need to know how to read the standard bar chart to succeed in technical analysis trading. As you trade, remember that most market indicators are nothing more than an arithmetic manipulation of the four standard price bar components. Get to know these four basic bar chart components by heart!
Get ready to buy the security if it has a series of higher highs and higher closes. Higher highs and higher closes indicate demand for the security is outstripping current supply — buyers outnumber sellers. The opposite is true, too — lower lows and lower closes mean you should get ready to sell, since sellers are overwhelming buyers. What if the price bars are not consistently offering higher or lower closes? This situation is called congestion, and you should hold off trading the security until you see a trend.
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Source:http://www.dummies.com/how-to/content/reading-the-basic-price-bar-like-a-technical-analy.html
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