TimelessMarket Theory
Concept

How to Read a Chart

Reading price & charts

A price chart plots price (up the side) against time (across the bottom) — a picture of the auction between buyers and sellers. There are three common ways to draw it, and the candlestick is the one you'll use most.

Anatomy of a candlestick — open, high, low, close, body and wicks
A candlestick's body spans the open and close; the wicks reach the high and low. Colour tells you who won the period at a glance.

Line chart

Connects each period's closing price into one line. Simple and clear, but it hides everything except the close.

OHLC bar

A vertical bar showing the period's range, with a left tick for the open and a right tick for the close — four prices in one mark.

Candlestick

The same four prices, drawn so the open-to-close relationship pops: a thick body plus thin wicks. Green/hollow = close above open; red/filled = close below.

See also

Watch — candlesticks taught by a pro desk

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