Module 9: Chart Types
Key Takeaways
- Candlestick charts are the most popular for trading.
- Line charts simplify the big picture using closing prices.
- Bar charts (OHLC) show the same data as candles in a different style.
- Heikin Ashi smooths price to highlight trends.
Candlestick chart
The default for most traders. Each candle shows full OHLC and colour-codes bullish/bearish periods, making momentum and reversals easy to read.
Line chart
Connects only the closing prices into a single line. It removes noise and is excellent for seeing the overall trend or long-term picture at a glance, but hides intra-period detail.
Bar chart
Also called an OHLC bar. A vertical line marks the high-low range; a small left tick is the open and a right tick is the close. Same information as a candle, preferred by some traders for its clean look.
Heikin Ashi
A modified candlestick that averages prices to filter out noise. Long runs of same-colour candles make trends obvious, but because values are averaged, it does not show true open/close prices — don’t use it for exact entries.
Most traders learn on candlesticks. Try the others on TradingView to see which suits your eye, but standard candles remain the universal language.
Frequently Asked Questions
Candlesticks for most decisions; line charts for the macro view; Heikin Ashi to confirm trends.