Free Trading School · Level 4: Reading Charts
Line, bar and candlestick charts
A chart is simply price plotted over time. There are three common ways to draw it.
- Line chart: connects the closing prices. Clean and good for seeing the big picture, but it hides what happened during each period.
- Bar chart: a vertical bar from high to low with small ticks for the open (left) and close (right).
- Candlestick chart: the same four prices as a bar, drawn with a coloured body. It is the most popular because you see at a glance who won each period.
Every lesson and strategy on TradeSchool uses candlestick charts, so that is what we will master next.
Key takeaway
Use candlesticks for trading decisions and a line chart when you just want the big picture.
Quick answers
What do beginners need to know about line, bar and candlestick charts?
A chart is simply price plotted over time. There are three common ways to draw it.
What is the key takeaway from the lesson on line, bar and candlestick charts?
Use candlesticks for trading decisions and a line chart when you just want the big picture.
What does a long lower wick on a candle suggest?
Continue in the interactive school (diagrams, quiz, progress) →
Buyers rejected the lower prices. Price went low but closed far above the low, so buyers pushed back.
Next lesson: Anatomy of a candlestick