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Charts & Candles

OHLC

Beginner

Also calledopen high low closebar chartline chart

Open, high, low and close: the four prices every bar or candle summarises.

What it means

Line charts show only closes; bar and candle charts show all four.

In practice

The four prices carry different information. The open and close show where the period started and ended, the high and low show the extremes that were tested. Most indicators are calculated from the close alone.

Daily and weekly opens, highs, lows and closes are also levels in their own right. The previous day's high and low are watched by many intraday traders as reference points and targets.

What to watch for

A line chart hides the highs and lows, so wicks, sweeps and rejections are invisible on it. Use it to see the overall direction, and candles or bars for anything that depends on what happened inside the period.

Entrix Academy

Learn these terms step by step, one lesson free

Entrix Academy is the trading course inside EntrixAlgo. It teaches the ideas in this glossary with interactive lessons, practice and a final exam. It is part of Pro, and a free account opens one lesson of your choice.

  • 129 lessons, start anywhere
  • Practice on every lesson
  • Final exam and certificate