OHLC chart

OHLC chart is one of the most used ways of displaying price movements of financial instruments. OHLC means one of the shown events: O – open, H – high, L – low, C – close.

The vertical line represents a unit of time (eg. day), two small lines on the left and right represent the first and the last rate, which were achieved per unit of time (eg. day). The positive trend within trading day on the OHLC chart is shown so that the closing rate is above the starting rate.

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OHLC chart

Long bars, in which the distance between the top and bottom is greater than usual, are indicator of “excitement” on the market. Increased volatility is very important for technical analysts. For example, if the closure is located at the top of the bar, this indicates that the demands weren’t met, which means that the next bar will open higher. The effect is event more pronounced if the event is accompanied by other signs of “excitement”: long bars, high turnovers or price gaps.

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Bar on OHLC chart

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