A bar chart, also called an OHLC chart, shows four prices for each period: the open, the high, the low and the close. Each period is drawn as a single vertical bar with two small ticks. Bar charts give you the full picture of each session and were the standard chart in the West long before candlesticks became popular.
How to read a bar
- The top of the bar is the highest price of the period.
- The bottom of the bar is the lowest price.
- The small tick on the left is the opening price.
- The small tick on the right is the closing price.
If the right tick is higher than the left tick, the price closed up for the period. Many charting packages colour these bars green and down bars red, which makes them easier to read at a glance.
Every timeframe works the same way. On a weekly chart, each bar is one week: the Monday open, the week's high and low, and the Friday close.
What bar charts tell you
- Range: a tall bar means a volatile session; a short bar means a quiet one.
- Who won: a close near the high shows buyers in control; a close near the low shows sellers in control.
- Key levels: highs and lows are easy to see, which helps with drawing support, resistance and trend lines and with placing stops.
Bar charts vs candlesticks
A candlestick chart shows exactly the same four prices. The difference is how they are drawn: candles fill in the body between the open and the close, which makes the direction of each session jump out. Most traders find candles quicker to read. Bar charts take up less space, so you can see more history on one screen, and some traders feel they are less distracting.
Both work. Pick the one you find easier to read and stick with it.
Related guides
This guide is for education only and is not financial advice. Trading carries risk; you can lose more than you expect.