Module 1 of 6 in Technical analysis
Reading price charts
Price charts, OHLC data, candlesticks, timeframes, linear and logarithmic scales, volume, and why historical prices are adjusted.
5 lessons in this module. Progress is saved in your browser as you go.
Every technical method starts from the same raw material: a record of prices and volumes. This module explains how that record is drawn, what each part of a candlestick means, how the choice of timeframe and scale changes what you see, and why the historical prices on a chart may not be the prices that actually traded.
By the end of this module you should be able to
- Read line, bar and candlestick charts and explain what each shows.
- Interpret open, high, low and close data and the anatomy of a candlestick.
- Explain how timeframe and linear or logarithmic scales change the appearance of a chart.
- Read trading volume and explain how prices are adjusted for splits, bonuses and dividends.
Lessons in order
Module test
10 questions, chosen at random from a bank of 30 questions and balanced across this module's learning goals and difficulty levels. Every question comes with an explanation. You need 80% to pass, and you can retake it as often as you like with a fresh set of questions.
This module builds on
- How stock exchanges work: A chart is a record of the trades an exchange matches, explained there.
- Percentages, percentage change and percentage points: Logarithmic scales show percentage changes, which that lesson explains.
- Bid, ask, spread and liquidity: Volume is one of the main signs of liquidity, explained there.
- Dividends, splits, bonus shares and other corporate actions: Splits, bonus issues, rights issues and dividends are explained there.