What is a Bar Chart?

A Bar Chart is a chart that uses horizontal or vertical bars to show us a comparative study about the various categories of the given data or information.

In other words, a Bar Chart shows/ displays and compares a discrete category of information provided. The height of each bar defines a specific numeric value. 

Types of Bar Charts-

  1. Single or vertical Bar Chart-  A Single or Vertical Bar Chart is a graph that is used to convey the discrete value of the items for each category on either side of the axes on the graph. 
  2. Horizontal Bar Charts- A Horizontal Bar Chart is similar to a Vertical Bar Chart but its position is horizontal. The longer the horizontal bar the more the category or value of the respective unit.
  3. Grouped Bar Chart- A Grouped Bar Chart is a Cluster Bar Chart to depict discrete values for multiple items that lie under the same category. They also help us to show the values of sub-groups of similar categories. 
  4. Stacked Bar Chart- Some Bar Charts have the bars of the graph divided into subparts that represent the discrete values for items that represent a portion of an entire group is called a Stacked Bar Chart.

These Charts are similar to Grouped Bar Charts only the Bar is divided into multiple sub-groups.

Stacked Bar Charts are also used to represent the percentage contribution that the different sub-groups contribute to each class.

The different parts of a Bar Chart are-

  • Measurements 
  • Title
  • Axis label 
  • Category name
  • Key

How To Read Or Describe A Bar Chart?

First- The trend of the graph must be mentioned at first. That is the main concept and idea of the chart that must be stated.

Second- The Bar Charts must be supported with the help of examples. Specific data that supports the main idea of the charts.

Third- The main idea of the Bar Chart must be repeated, the audience must be reminded once again what this Bar Chart is all about.

Uses of a Bar Chart- 

A bar chart is used to:

  • Compare data for different classes of groups
  • Show the relation between the various classes and groups by using the axes of the graph
  • Make the study of different aspects easy with comparison
  • Create presentations
  • Represent the given information
  • Study patterns of various groups over a large period
  • Inform employees about the increase and decrease in their sales over time

Important Things To Remember While Working With Bar Charts-

  • Do not describe the types of bars.
  • Do not use shorthand.
  • Never start any sentences with numbers.
  • Do not mention every detail, the pictorial presentation must be enough to understand.

Role of Bar Charts in the Stock Market

A Bar Chart in the Stock Market depicts the price bars of each stock or categories of stocks that show the movement of the prices of each stock over a brief period. Each bar has a straight (vertical) line that shows the highest price and lowest price reached by the stock during the wanted period.

Bar charts help the traders in the stock market to scrutinize trends, identify trends, and monitor the price movements.

If the upper and lower extremities of a Bar Chart in the field of the Stock Market are near to each other then the collateral will be considered immutable. If the price difference is large between upper extremities and lower extremities then collateral will be considered flexible.

If the opening price of the market is less than the current closing price then the bar chart will indicate as black or green. It will thus, represent a security benefit. However, the bar chart will display the loss of securities if the opening price of the market is near to the current market price. It will be displayed as red. 

Analysts post comparing several chart bars have found out that colour code indeed helps in understanding the graph quickly and easily. 

Bar Charts in Excel

To insert a bar chart in Microsoft Excel, first, you must open your Excel spreadsheet and select your data. This can be done manually by using your mouse cursor, or you can select a required cell in your required range and press ‘Ctrl+A’ to select the data automatically (Select All).

Once the desired data is selected, then click on Insert then choose Insert Column or Bar Chart. You will see various kinds of Bar Charts.

Microsoft Excel will then automatically extract data from your data and then it will create a chart on the same spreadsheet, using your column and row labels to headings of the axis and chart. You can enlarge or reduce the size of the chart as per the requirements.

Conclusion

Bar Charts have made data study easy in today’s world. Pictorial representation is much easier to grasp as compared to theoretical knowledge.

Today theoretical study with help of different types of graphs in all the educational fields have acted as a blessing to the education system around the globe.