Chart Types: Line, Bar, Candlestick

Charts are a trader's primary tool. They visualize price data over time, letting you spot trends, patterns, and potential trade setups. There are three main types.

Line Charts

The simplest chart type. It connects closing prices with a continuous line.

Pros: Clean, easy to read, great for seeing the overall trend. Cons: Hides intraday price action — you can't see opens, highs, or lows.

Use line charts for a quick overview or when analyzing long-term trends.

Bar Charts (OHLC)

Each bar shows four data points: Open, High, Low, Close (OHLC).

The vertical line shows the range (high to low)
The left tick marks the open
The right tick marks the close

Bar charts give you all the price data but can be harder to read at a glance.

Candlestick Charts

The most popular chart type among traders. Each candle shows the same OHLC data as a bar, but in a more visual format:

The body (thick part) shows the open-to-close range
Green/white body = price closed higher than it opened (bullish)
Red/black body = price closed lower than it opened (bearish)
Wicks (thin lines) show the high and low extremes

Candlestick patterns like doji, hammer, engulfing, and pin bars help traders predict short-term reversals.

Which Should You Use?

Candlestick charts are the standard for active traders. They convey the most information visually and form the basis of many trading strategies you'll learn in this academy.

Key Takeaway