OHLC Chart: How to Read Open, High, Low and Close Bars
An OHLC chart shows the open, high, low and close price for each trading period, with one bar per period. The open is the first price of the period, the close is the last, and the high and low are the top and bottom of its range. It packs in more detail than a line chart, which helps when studying short-term price moves. It records what already happened; it does not predict what comes next.
What It Means
Each bar is a small drawing of four prices. A vertical line runs from the period's low to its high. A tick on the left marks the open, and a tick on the right marks the close. Some people call it a bar chart or an OHLC bar.
Rapunzl uses color to show whether the stock increased or decreased for the period. In the drawing here, green means the close was above the open and red means it was below. A candlestick uses the same four numbers, drawn with a filled body instead of ticks.
Where It Applies
OHLC is one of three chart types in Rapunzl, next to Line and Candlestick. A line chart gives one price per period and no information about how the stock performed during each day. An OHLC chart keeps the whole day.
| Chart type | What each period shows | Shows the high and low? |
|---|---|---|
| Line | One price per period | No |
| OHLC | Open, high, low and close as ticks on a line | Yes |
| Candlestick | Open, high, low and close as a body with wicks | Yes |
That extra detail matters in a few places. Studies built on the high or low, such as Average True Range, need a Candlestick or OHLC chart. On a line chart, Rapunzl tells you the study isn't shown there and to switch to Candlestick or OHLC. Pattern Markers also work on Candlestick and OHLC charts.
How to Read It
The numbers below come from one made-up bar: open $50, high $56, low $48, close $54.
- Direction. Compare the two ticks. The right tick ($54) sits above the left tick ($50), so the close was above the open and the bar is green.
- Size. The bar's height is the high minus the low: $56 minus $48 is $8. Tall bars mean wide swings and short bars a quiet period. This range is the raw input to the true range behind Average True Range.
- Finish. Look at where the right tick sits on the line. At $54 it is $2 under the high, so the period ended near its top.
Where It Misleads
A bar gives four prices, not the path between them. It cannot say whether the high came before the low or how long the price stayed at each level. Two very different days can draw the same bar.
Bars also ask more of the eye. They can look cleaner over a long history, while candles make up and down days easier to spot. Rapunzl's 1d tab carries no open, high, low or close, so it draws as a line.
Try It in Rapunzl
Open a stock's chart, then go to Customize Chart → Chart Type and choose OHLC Chart. Under Candle Settings, Traditional Tabs (1d, 1m, 3m, 6m, 1y, 5y, 15y) choose how much history the chart shows, while Candle Lengths (T, 5M, 15M, 30M, D, W, M) choose how much time each bar covers. Bars of 5, 15 and 30 minutes are part of Rapunzl Premium.
Rapunzl's Stock Scanner has no OHLC setting, but it reads open, high, low and close shapes for you. In the Stock Scanner, the candlestick pattern filters (Bullish, Bearish and Indecision candlestick) check the latest daily bar. To see the bar behind a match, open that stock's chart and switch to OHLC.
A 15-Minute Class Activity
Draw the Day. Students work in pairs with graph paper, a pencil and a ruler.
- 3 minutes. Model one made-up bar on the board: open $50, high $56, low $48, close $54.
- 4 minutes. Give each pair three made-up days as open, high, low, close. Day 1: $20, $24, $19, $23. Day 2: $23, $25, $18, $19. Day 3: $19, $21, $18, $21. Pairs draw three OHLC bars and label each up or down.
- 5 minutes. Pairs find each bar's range and name the most active day. The ranges are $5, $7 and $3, so Day 2. Then they redraw Day 2 as a candle and say which version shows its direction faster.
- 3 minutes. Exit ticket: in one sentence, say what the two ticks show that a line chart does not.
Related Indicators
- How to Read a Candlestick Chart: the same four prices, drawn as bodies and wicks.
- Line chart: the simpler view with one price per period.
- Chart timeframes: how long each bar covers.
- Average True Range: built from each bar's high and low.
Frequently Asked
Questions
OHLC stands for open, high, low and close, the four prices recorded for each trading period.
They show the same four prices. OHLC draws a vertical line with a tick for the open and a tick for the close, while a candlestick draws a filled body between them.
Color shows whether the stock increased or decreased for the period. In the drawing in this guide, green means the close was above the open and red means it was below.
Teach Chart Reading With Rapunzl
Request a demo to see how Rapunzl's three chart types and simulator fit your course. If your own student wants to practice at home, the details are on our parents page.
Indicators, patterns and examples in this article are for education and are not investment advice or a recommendation to buy or sell any security.
By Maria Rodriguez, Curriculum Designer at Rapunzl.