Technical analysis

Line charts

Line charts show a single data point for each day, rather than the high/low range. A line joins together these consecutive data points.

The daily line chart is perhaps the simplest chart format you’ll find, as it displays only the market’s closing price.

Bar charts

Bar charts use vertical bars to show the full price range for each day. If you want to take a longer term view, you can normally change the scale to weekly or monthly bars. Or for a shorter term view, intraday charts such as hourly or five minutes.

The left-hand notch shows you the opening price that day, and the right-hand notch shows you the closing price.

Candlestick charts

Candlestick charts use the same data as bar charts but represent the information slightly differently. Traditionally, candlesticks are shown in black and white, but many charts use colours instead.

  • A white (or green, or blue) body signifies a day in which the price has increased.
  • A black (or red) body signifies a day in which the price has decreased.
  • The body of the candle itself shows the open-to-close range.
  • The wick of the candlestick shows the day’s full range.