Types of Charts

Three Ways to See Price

All price charts show the same data — but in different visual formats. Each format reveals different information and suits different trading styles.

The three main chart types are:

• Line chart
• Bar chart
• Candlestick chart

Line Chart

The simplest chart type. Connects closing prices with a single line.

What it shows:
Only closing price for each period. Nothing else.

Advantages:

• Clean and easy to read
• Great for seeing overall trend
• Less visual noise
• Good for long term analysis

Disadvantages:

• Hides important information — open, high and low prices
• Cannot see volatility within each period
• Misses intraday price action

Best for:
Long term investors who want a clean picture of price direction.
Also used in our Academy chart visuals for clarity.

Bar Chart

Also called OHLC chart — Open High Low Close.

Each bar shows four pieces of information:

• Top of bar — highest price reached
• Bottom of bar — lowest price reached
• Left tick — opening price
• Right tick — closing price

Advantages:

• Shows full price range for each period
• More information than line chart
• Used heavily in traditional stock markets

Disadvantages:

• Harder to read quickly
• Less visual than candlestick
• Takes practice to interpret

Best for:
Traditional traders coming from stock markets.

Candlestick Chart

The most popular chart type among professional crypto traders worldwide.

Invented in Japan in the 1700s by rice traders — candlestick charts have been used for over 300 years.

Each candle shows the same four data points as a bar chart — but in a much more visual way:

Green candle — price went UP

• Bottom of body = opening price
• Top of body = closing price
• Lines above and below = wicks showing high and low

Red candle — price went DOWN

• Top of body = opening price
• Bottom of body = closing price
• Lines above and below = wicks showing high and low

Advantages:

• Most visual and intuitive
• Instantly shows bullish or bearish sentiment
• Reveals patterns impossible to see on other charts
• Used by majority of professional traders
• Hundreds of recognized patterns

Disadvantages:

• Takes time to learn all patterns
• Can appear complex for beginners

Best for:
All active traders — from beginners to professionals.

Which Chart Should You Use?

Use candlestick charts. Always.

Every serious trader uses candlestick charts. The patterns they reveal — which we will study in detail in upcoming topics — are impossible to see on line or bar charts.

Line charts have their place for quick overview. But for actual trading decisions — candlesticks are the professional standard.

In the next topic we will learn about timeframes and how to choose the right one for your trading style.