Now that we know how to plot a bar chart, and having intro­duced the three basic sources of information—price, volume, and open interest—we're ready to look at how that data is interpreted. Remember that the chart only records the data. In itself, it has lit‑
tle value. It's much like a paint brush and canvas. By themselves, they have no value. In the hands of a talented artist, however, they can help create beautiful images. Perhaps an even better comparison is a scalpel. In the hands of a gifted surgeon, it can help save lives. In the hands of most of us, however, a scalpel is not only useless, but might even be dangerous. A chart can become an extremely useful tool in the art or skill of market fore­casting once the rules are understood. Let's begin the process. In the next chapter, we'll look at some of the basic concepts of trend and what I consider to be the building blocks of chart analysis.