📝 How to Read OHLC Charts
📊 How to Read OHLC Charts.
🌟 What is an OHLC Chart?
👉 OHLC stands for:
✔️ O – Open Price
✔️ H – High Price
✔️ L – Low Price
✔️ C – Close Price
It simply shows:
👉 When the market started — Open
👉 How high price went — High
👉 How low price went — Low
👉 Where market closed — Close
It’s like checking:
🕘 Morning price?
📈 Highest price of the day?
📉 Lowest price of the day?
🌇 Evening price?
🎨 How Does an OHLC Bar Look?
✔️ A vertical line (bar) shows High to Low price range.
✔️ A small left tick shows Open price.
✔️ A small right tick shows Close price.
🎯 Simple Example to Understand:
👦 You are selling mangoes 🍋 in the market today.
✔️ Morning (Open Price) = ₹100
✔️ Highest during day (High) = ₹120
✔️ Lowest during day (Low) = ₹90
✔️ Evening (Close Price) = ₹110
👉 Your OHLC bar will show:
✔️ A tall line from ₹90 (Low) to ₹120 (High).
✔️ A small tick to the left at ₹100 (Open).
✔️ A small tick to the right at ₹110 (Close).
🔍 How to Read an OHLC Bar?
1️⃣ If Close price is higher than Open price — Market went UP (Bullish 📈).
✔️ You can think: "Buyers were stronger today!"
2️⃣ If Close price is lower than Open price — Market went DOWN (Bearish 📉).
✔️ You can think: "Sellers ruled today!"
3️⃣ If the bar is very tall — The market was very active, big price movements! 🔥
4️⃣ If the bar is very short — The market was quiet, small price movements. 💤
💡 Why Use OHLC Charts?
✔️ Shows full story of the day — not just Closing price.
✔️ You can see fight between buyers & sellers.
✔️ Helps traders know when to buy or sell.
✅ Quick Tips to Remember:
✔️ Left Tick = Open Price
✔️ Right Tick = Close Price
✔️ Top of Bar = High Price
✔️ Bottom of Bar = Low Price
🎯 Easy Summary:
✔️ OHLC Chart tells: Who controlled the day — Buyers (Up) or Sellers (Down)?
✔️ Like watching the mood of the market in one bar! 😄
✔️ Best for short-term traders, technical analysts.
🛡️ Bonus Advice:
✔️ Always combine OHLC reading with Volume, Trendlines or Indicators for better decisions! 🕵️♂️
🛡️ Disclaimer:
⚠️ Disclaimer: The content provided on this website is for educational and informational purposes only. It should not be considered as investment advice, stock tips, or financial recommendations. Always do your own research or consult a SEBI-registered investment advisor before making any trading or investment decisions. 📢