Lesson 5.1: Introduction to Price Charts

Charts are the language of the stock market. They visualize share price movement over time and help traders spot trends and opportunities.

Line Chart: Plots only the closing price. Simple, good for beginners.

Bar Chart: Shows open, high, low, close (OHLC). More detail than a line chart.

Candlestick Chart: Like bar charts, but more visual.

• • Green (or white) candles = price closed higher than it opened (bullish).

  • Red (or black) candles = price closed lower than it opened (bearish).

Example (NSE): If Safaricom opened at KSh 20, hit a high of 22, a low of 19, and closed at 21, a candlestick would capture all that movement in one candle.

Key takeaway: Always start your analysis with the right type of chart.