Reading a stock price chart is the first skill every trader needs. Charts tell the story of a stock's price movement over time.

Types of Charts

Line Chart

The simplest chart — shows the closing price of a stock over time as a single line.

Candlestick Chart

The most popular chart type. Each candle shows four prices: open, high, low, and close for a given time period.

Understanding Candlesticks

  • Green/White candle: Price closed higher than it opened (bullish)
  • Red/Black candle: Price closed lower than it opened (bearish)
  • Upper shadow: The highest price reached
  • Lower shadow: The lowest price reached
  • Body: The range between open and close

Timeframes

Charts can be viewed in different timeframes: 1-minute, 5-minute, 15-minute, hourly, daily, weekly, or monthly. Day traders use short timeframes; investors use daily or weekly charts.

Volume

Volume bars at the bottom of the chart show how many shares were traded. High volume confirms a price move; low volume suggests weakness.

Key Chart Patterns

  • Trend lines (uptrend, downtrend, sideways)
  • Double top / double bottom
  • Head and shoulders
  • Triangles (ascending, descending, symmetrical)

Disclaimer: This article is for educational purposes only.