# Bar Graph

## What Is a Bar Graph?

A bar graph is a chart that plots data utilizing rectangular bars or segments (called containers) that address the total amount of perceptions in the data for that category. Bar charts can be displayed with vertical sections, horizontal bars, comparative bars (numerous bars to show a comparison between values), or stacked bars (bars containing various types of data).

Bar graphs are normally utilized in financial analysis for displaying data. A stock volume chart is a normally utilized type of vertical bar graph. A histogram is an illustration of a bar graph utilized in statistical analysis that portrays a likelihood distribution in certain data or sample.

## Understanding a Bar Graph

The purpose of a bar graph is to pass on social data rapidly as the bars display the quantity for a specific category. The vertical pivot of the bar graph is called the y-hub, while the lower part of a bar graph is called the x-hub.

When deciphering a bar graph, the length of the bars/sections determines the value as depicted on the y-hub.

The x-hub could be any variable, like time, or the category that is being estimated, for example, earnings per share (EPS), revenue, or potentially cash flow. In trading, bar graphs are frequently used to portray trading volume and will show up in a panel below a security's price chart.

## Bar Graph Features

A commonplace bar graph has a label or title, x-hub, y-pivot, scales or augmentations for the hub, and bars. A few graphs may likewise have a legend that determines what different tones address, for example, in a stacked bar graph.

Bar graphs are great for looking at least two values, or values after some time. Data is displayed either horizontally or vertically. Single bar graphs are utilized to convey discrete values of a thing inside a category. For example, a bar graph could display the number of guys with a certain characteristic for specific ages. The discrete value, or the number of occurrences where an individual has a certain characteristic, is displayed by differing the length of the bar. More occasions mean a more extended bar, and less cases mean a more limited bar. In this model, an alternate bar is laid out for each age or age group.

In technical analysis, a volume chart shows how much volume there was on every specific day. The x-hub shows days, while a bar stretching out up from that day shows how much volume there was per the y-hub.

Whenever a graph has a distinct zero point and the data set has both positive and negative values corresponding to this point, bars can in any case be displayed. Bars over the zero line normally address positive values (check the scale) while bars below the zero line regularly show negative values.

Data can be displayed horizontally or vertically. To switch the orientation, the x-and y-pivot are switched.

## Types of Bar Graphs

### Grouped Bar Graphs

Grouped bar graphs, likewise called bunched bar graphs, address discrete values for more than one thing that share a similar category.

A bar graph could display the number of individuals, male and female, with a certain characteristic for specific ages. The aggregate number of cases could be combined into one bar. On the other hand, the examples could stay segregated by orientation; one bar for every single male case and one bar for all females occasions would be set one next to the other for each age or age group.

### Stacked Bar Graphs

Stacked bar graphs or composite bar graphs partition an aggregate total into parts. These parts are ordinarily recognized by using various varieties for each section. In the model over, the aggregate of examples for the two guys and females might be combined into one bar however the bar might be isolated into numerous sections addressed by various tones.

Stacked bars require a legend or specific labeling to recognize what the different parts of the bar are appearing.

## Bar Graphs in Technical Analysis

A few forms of technical analysis use bar graphs. For example, traders might utilize a moving average convergence divergence (MACD) histogram, which is a famous technical indicator that outlines the difference between the MACD line and the signal line.

The following daily chart of Apple Inc. shares shows three types of bar graphs.

Along the right is price by volume, a type of horizontal bar graph which shows volume dispersion in light of price.

Along the lower part of the chart, volume is a type of vertical bar graph that shows bars addressing the number of shares traded each day.

At long last, the MACD histogram shows the separation between the MACD and the signal line. At the point when the histogram crosses the zero line it means the MACD and signal line have crossed, which a few traders use as a trade signal.

## Bar Graph versus Bar Chart

A bar graph shows data in sections, while a bar chart is a technical analysis term portraying the display of the open, high, low, close (in some cases the open is precluded) prices for a specific security during a specific time span utilizing a vertical bar. Small horizontal lines stretch out to the left and right of the vertical bar to show the open and close prices.

Not at all like the bar graph, the price bar just covers important prices and doesn't expand as far as possible up from the x-pivot.

## Limitations of the Bar Graph

A bar graph is a method for displaying data. What the data is decided to be displayed could mean for its interpretation. For instance, in the event that too large of a scale is picked, the data might seem irrelevant â€” when as a matter of fact it very well may be exceptionally huge, however the scale doesn't allow for a suitable comparison.

Bar graphs may likewise make data look convincing when it really could be deficient with regards to substance. Similarly as with all data, confirm the source it comes from, and ensure it is from a sufficiently large pool or sample.

For instance, taking a gander at a couple of days worth of volume data in a stock doesn't give a lot of important data. Yet taking a gander at how recent volume compares to volume over the course of the past year will give a technical trader more data for examining the volume.

## Highlights

• Data is introduced by means of vertical or horizontal sections.
• Bar graphs have a x-and y-pivot and can be utilized to exhibit one, two, or numerous categories of data.
• The segments can contain numerous labeled variables (or just one), or they can be grouped together (or not) for comparative purposes.
• Bar graphs can be made to show data in different, highly visual ways.