Technical analysis is the study of historical price action in the hope that past price patterns and statistical studies will guide and investor toward predicting future price action. One of the most efficient ways to analyze prices is to use a chart which can reflect historical prices in many forms which can allow an analyst to evaluate the domain of prices that are to be used for technical analysis.
One of the most common charts used by analysts to evaluate price action is the open, high, low, close chart. This type of chart shows a trader the opening price, which is designated by a horizontal tab on the left side of the bar (red arrow). The closing price is a horizontal tab on the right side of the bar (black arrow). The high points and low points are obvious.