Core Trading Skills • Lesson 3
Chart Types: Candlesticks, Bars, and Lines 🕯️
A chart shows how price has moved over time. Different chart types show the same market in different ways, but beginners usually learn fastest with candlestick charts because they show price behaviour clearly.
Simple view of closing prices.
More detail than line charts.
Clear view of buyer and seller behaviour.
Why Chart Types Matter
A chart is like a market story.
The same price movement can be shown in different ways, depending on the chart type you choose.
The 3 Common Chart Types
Best for seeing the simple overall direction.
Shows open, high, low, and close, but can feel less visual.
Shows price behaviour visually and is easier for beginners to read.
Each chart type has a purpose. But for this course, most examples will use candlesticks because they show the most useful information clearly.
Line Charts
A line chart connects closing prices with a simple line.
It is the cleanest chart type.
Line charts are useful for seeing the overall direction of the market without too much detail.
They help beginners identify:
Is price generally moving up, down, or sideways?
Where did price change direction?
Where does price seem to react often?
The weakness of a line chart is that it hides important details like highs, lows, opens, and rejection wicks.
Bar Charts
A bar chart gives more detail than a line chart.
Each bar usually shows:
Open price
High price
Low price
Close price
This is useful because it shows how price behaved during that period.
Bar charts are helpful, but many beginners find them less visual than candlesticks.
Candlestick Charts
Candlestick charts are the most popular among many retail traders because they are visual and easier to read.
Each candlestick shows:
One Candlestick Shows 4 Prices
Open
High
Low
Close
A candlestick has a body and wicks.
The body shows the distance between the open and close.
The wicks show how high and low price moved during that candle.
Candlestick Example: Candle Anatomy
Candlestick Example
What one candlestick shows
OHLC
OHLC means open, high, low, and close. A single candle can tell you how price behaved during that period.
Bullish Candles
A bullish candle means price closed higher than it opened.
This shows that buyers were stronger during that candle.
On many platforms, bullish candles are shown in green or white.
Bullish Candle Idea ✅
Open lower: the candle starts at a lower price.
Close higher: buyers push price upward.
Meaning: buyers were stronger during that candle.
Bearish Candles
A bearish candle means price closed lower than it opened.
This shows that sellers were stronger during that candle.
On many platforms, bearish candles are shown in red or black.
Bearish Candle Idea ❌
Open higher: the candle starts at a higher price.
Close lower: sellers push price downward.
Meaning: sellers were stronger during that candle.
Candlestick Example: Buyers vs Sellers
Candlestick Example
Bullish and bearish candles side by side
Buyer vs seller
Candle Wicks
Wicks show rejection or price exploration.
A long upper wick can mean price tried to move up but was pushed back down.
A long lower wick can mean price tried to move down but was pushed back up.
Wicks are important because they can show where buyers or sellers reacted.
Candlestick Example
Long wicks can show rejection
Rejection
A wick shows that price moved to an area but failed to stay there. This can be useful near support and resistance zones.
Timeframes
Charts can show different timeframes.
A candle on the 1-hour chart shows price movement for one hour.
A candle on the daily chart shows price movement for one day.
Common Timeframes ⏱️
1 minute
5 minutes
15 minutes
1 hour
4 hours
Daily
Weekly
Monthly
Higher timeframes usually show the bigger picture.
Lower timeframes show more detail, but they can also be noisy.
Beginner Tip
Start by learning candlestick charts because they show useful information clearly.
But do not ignore line charts completely.
Line charts are helpful when you want to simplify the market and see the overall direction.
Try This on a Demo Chart 🧪
Open any currency pair on a demo platform and switch between line, bar, and candlestick charts. Notice how candlesticks reveal more information about each price period.
Start with the line chart and identify direction.
Switch to bars and notice the extra detail.
Switch to candlesticks and study the bodies and wicks.
Quick Self-Check
Before moving on, test yourself:
What does a line chart mainly show?
It connects closing prices and shows the simple overall direction of price.
What does a candlestick show?
It shows the open, high, low, and close for that time period.
Why are wicks useful?
Wicks can show rejection, meaning price moved to an area but failed to stay there.
Quick Recap
What You Learned ✅
- Line charts show closing prices in a simple way.
- Bar charts show open, high, low, and close.
- Candlestick charts show price behaviour visually.
- Bullish candles show buyers were stronger during that candle.
- Bearish candles show sellers were stronger during that candle.
- Wicks can show rejection areas.
- Timeframes change how much price movement each candle represents.
⚠️ Educational only — not financial advice.
Practise reading charts slowly before placing trades. Your goal is to understand what price is showing, not to rush into entries.