Scientific Interpretation of Bar Charts

Originally published in 1979 by the Commodity Research Institute, Scientific Interpretation of Bar Charts remains one of the most methodical and technically precise studies ever written on the behavior of price bars in commodity markets. John R. Hill — a veteran trader and engineer — dissects every element of bar-by-bar action, from daily overlaps and intersections to scalping tactics and wave structures, revealing the inner logic of market psychology as expressed in price movement.

Unlike generic charting manuals, this volume is written by a trader who personally tested each observation through years of practical trading. Hill’s engineering mindset transforms the art of tape reading into a structured analytical process — a blueprint for decoding market supply and demand in real time. Each chapter builds from foundational daily bar concepts to advanced methods like the Four-Day-Close and Trendline Break system, turning raw market data into actionable, rule-based decisions.

✅ What You’ll Learn:

• The precise interpretation of individual bars: hooks, inside days, one-day reactions, and overlap theory.
• How to read the law of supply and demand directly from chart action — with more than 80 real-market examples.
• Advanced tools including the Two-Day Intersection, Daily Overlap, and Labored Move theories.
• How to detect trend changes early using spring and upthrust formations.
• The mechanics of day-trade scalping, swing trading, and daily tape reading for professional execution.
• Practical wave and trendline analysis for forecasting continuation or reversal setups.

💡 Key Benefits:

• A scientifically structured approach to bar chart interpretation — decades ahead of its time.
• Integrates psychology, structure, and market energy into one cohesive trading method.
• Applicable across commodities, futures, and equities.
• Includes quantitative techniques for intraday traders and discretionary swing traders alike.
• Teaches you to think like a professional chart analyst — not merely follow signals.

👤 Who This Book Is For:

This book is intended for intermediate to advanced traders who already understand basic charting and want to master the scientific side of bar analysis. It is particularly valuable for traders who rely on discretionary setups, price structure recognition, or tape reading to anticipate market behavior.

📚 Table of Contents:

• Daily Bar Chart Analysis
• Chart Action
• Trendline Theory
• How to Detect a Trend Change
• Daily Overlap Theory
• Two Day Intersection Theory
• Trading Running Markets
• Day Trade Scalping Rules
• Daily Tape Reading Techniques
• Actual Market Action Analysis
• Wave Analysis of Soybeans
• Four Day Close & Trendline Break

Scientific Interpretation of Bar Charts By John R. Hill