π How to Read OHLC Charts
π How to Read OHLC Charts.
π What is an OHLC Chart?
π OHLC stands for:
βοΈ O β Open Price
βοΈ H β High Price
βοΈ L β Low Price
βοΈ C β Close Price
It simply shows:
π When the market started β Open
π How high price went β High
π How low price went β Low
π Where market closed β Close
Itβs like checking:
π Morning price?
π Highest price of the day?
π Lowest price of the day?
π Evening price?
π¨ How Does an OHLC Bar Look?
βοΈ A vertical line (bar) shows High to Low price range.
βοΈ A small left tick shows Open price.
βοΈ A small right tick shows Close price.
π― Simple Example to Understand:
π¦ You are selling mangoes π in the market today.
βοΈ Morning (Open Price) = βΉ100
βοΈ Highest during day (High) = βΉ120
βοΈ Lowest during day (Low) = βΉ90
βοΈ Evening (Close Price) = βΉ110
π Your OHLC bar will show:
βοΈ A tall line from βΉ90 (Low) to βΉ120 (High).
βοΈ A small tick to the left at βΉ100 (Open).
βοΈ A small tick to the right at βΉ110 (Close).
π How to Read an OHLC Bar?
1οΈβ£ If Close price is higher than Open price β Market went UP (Bullish π).
βοΈ You can think: "Buyers were stronger today!"
2οΈβ£ If Close price is lower than Open price β Market went DOWN (Bearish π).
βοΈ You can think: "Sellers ruled today!"
3οΈβ£ If the bar is very tall β The market was very active, big price movements! π₯
4οΈβ£ If the bar is very short β The market was quiet, small price movements. π€
π‘ Why Use OHLC Charts?
βοΈ Shows full story of the day β not just Closing price.
βοΈ You can see fight between buyers & sellers.
βοΈ Helps traders know when to buy or sell.
β
Quick Tips to Remember:
βοΈ Left Tick = Open Price
βοΈ Right Tick = Close Price
βοΈ Top of Bar = High Price
βοΈ Bottom of Bar = Low Price
π― Easy Summary:
βοΈ OHLC Chart tells: Who controlled the day β Buyers (Up) or Sellers (Down)?
βοΈ Like watching the mood of the market in one bar! π
βοΈ Best for short-term traders, technical analysts.
π‘οΈ Bonus Advice:
βοΈ Always combine OHLC reading with Volume, Trendlines or Indicators for better decisions! π΅οΈββοΈ
π‘οΈ Disclaimer:
β οΈ 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. π’