The definition of a ‘histogram’

A bar Graph is a chart plots the data using rectangular bars (so called bunkers), which represent the total number of observations in the data for this category. A bar Chart is a style of the histogram; it is often used to represent the range of the stock price in one day. In Finance and Economics, example of a bar chart is one that compares the median family income of several States in which one axis represents different categories, in different States, and the other represents a discrete series of data points, the median income.

Bar charts can be constructed with the data rising vertically or extend horizontally. Widely used a vertically-oriented bar chart-a column chart that uses bars to represent the distribution of frequencies of visual data. Histograms are commonly used in statistics to show how many of a certain type of variable occurs within a specific range, collected into ‘bins’ or ‘buckets’. For example, the census considering the age distribution of a particular country can create a histogram to show how many people between the ages of 0 and 10 11 and 20 21 and 30 31 and 40, and the histogram will look similar to the following example:.

Breaking down the ‘histogram’

The goal of the columnar quickly convey relational information as bars display the number for a specific category. In the left part of the histogram is called the Y-axis, and in the lower part of the histogram is called the x-axis. In the interpretation of the bar graph, the length of the bars determines the maximum value, minimum value, and any discrepancies.

Features

A typical histogram has a label, axis, scales and bars. These charts are ideal for comparing two or more values. Data is displayed either horizontally or vertically. Single bar charts are used to transfer the discrete values of the items in the category. For example, a bar Chart can show the number of men with a certain characteristic for a certain age. A discrete value, or the number of instances in which an individual has a certain characteristic appears depending on the length of the string. In this example, a different bar is set for each age or age group.

When the graph has a clearly defined zero point, and the dataset contains positive and negative values in relation to this point, the bars can still be displayed. When this happens, a horizontal bar graph, usually used in which the independent variable is on the vertical axis. Bars proceed to the left and right of the zero point; bars on the left usually show negative values, while bars to the right-positive values.

Grouped Histograms

Grouped histograms, also called cluster histograms that represent discrete values for more than one item, belonging to the same category. Elaborating on the above example, a bar Chart can display the number of people, men and women with a specific characteristic for a certain age. The combination of a number of cases can be combined into a single bar. In addition, instances can be stored separately on a floor; in one bar for all men copies and one bar for all instances females will be located side by side in every age or age group.

The Bar Chart

Bar charts or compound histograms to divide the total amount into parts. These parts are usually determined by using different colors for each section. In the above example, the amount of instances men and women can be combined into a single bar, but the bar can be divided into several sections represented by different colors.

Bar charts in technical analysis

Some technical analysis relies on chart. For example, traders can use the convergence-divergence (MACD) histogram, which is a popular technical indicator that shows the difference between the MACD line and signal line.