Structurally, a bar chart is almost similar to line chart. The only difference is that the bar chart is able to capture and explain more data points within the same chart. Hence if you are looking to identify more complex and abstruse trends then a bar chart may be more suitable. So, how is a bar chart different from a line chart? While the line chart only captures one price point, the bar chart captures 4 price points for each unit. It captures the open price, the close price, the intraday high and the intraday low for each point. That not only makes it more comprehensive compared to the line chart but also makes it a better measure of the volatility of the stock. One can capture the relative heights of these points and get a clear idea of whether the volatility range of the stock is narrowing or broadening. Therefore, the bar chart also captures the aspect of risk, which is normally ignored in a line chart. That is because; volatility is the best proxy for risk inherent in a stock.

Ria Jainanswered.Structurally, a bar chart is almost similar to line chart. The only difference is that the bar chart is able to capture and explain more data points within the same chart. Hence if you are looking to identify more complex and abstruse trends then a bar chart may be more suitable. So, how is a bar chart different from a line chart? While the line chart only captures one price point, the bar chart captures 4 price points for each unit. It captures the open price, the close price, the intraday high and the intraday low for each point. That not only makes it more comprehensive compared to the line chart but also makes it a better measure of the volatility of the stock. One can capture the relative heights of these points and get a clear idea of whether the volatility range of the stock is narrowing or broadening. Therefore, the bar chart also captures the aspect of risk, which is normally ignored in a line chart. That is because; volatility is the best proxy for risk inherent in a stock.