Which chart type is best?

For most traders the candlestick chart is best, because it shows the open, high, low and close in a form that is easy to read at a glance. Line charts suit quick trend reads, and bar charts carry the same data as candles but are harder for beginners to interpret.

OHLC stands for open, high, low and close, the four prices a bar chart shows for each period. A tick on the left of the bar marks the open, a tick on the right marks the close, and the bar itself spans the high to the low.

Why are candlesticks so popular?

Candlesticks show the same four prices as a bar chart but use a coloured body and wicks, so you can instantly see whether price rose or fell and how strongly. That visual clarity makes them the default choice on almost every platform.

Can I switch between chart types?

Yes. Every trading platform lets you switch chart type with a click, so you can view the same market as a line, bar or candlestick chart. Many traders flip to a line chart for a clean trend read, then back to candles to time entries.

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Strategy · Charts

The Three Types of Price Charts

Line, bar or candlestick? The chart style you choose changes how much you can see at a glance. Here is how the three main chart types work and which one most traders rely on.

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Before you can analyse price, you have to choose how to display it. Every trading platform offers the same three core chart types, and each shows the same data in a different amount of detail. Picking the right one is the first step in reading a market.

The line chart

The simplest option, a line chart joins together the closing price of each period into a single continuous line. It strips away noise and shows the overall direction cleanly, which makes it useful for spotting the big picture, but it hides the highs, lows and opens along the way.

The bar chart

A bar chart, sometimes called an OHLC chart, shows four prices per period: the open, high, low and close. A small tick on the left marks the open and one on the right marks the close, with the vertical bar spanning the range. It carries far more information than a line, though many traders find it harder to read at a glance.

The candlestick chart

By far the most popular, the candlestick chart shows the same four prices as a bar chart but in a clearer visual form. A coloured body spans the open and close, and thin wicks mark the high and low. One glance tells you whether buyers or sellers won the period, which is why almost all traders default to candlesticks.

Which should you use?

For most traders, candlesticks are the natural home because they balance detail and readability. A line chart is handy for a quick read of the trend or for very long-term views. Bar charts remain popular with some traders, but for beginners the candlestick is the clearest place to start.

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A note on risk
This guide is for educational purposes only and is not financial advice. Trading forex and CFDs carries a high level of risk and can result in the loss of all your capital. Most retail investor accounts lose money. Make sure you understand the risks and seek independent advice if needed before trading.