Unit 3 · Level 1 · Charts & Candles
Why charts exist
A price chart is just the history of every trade, drawn left to right through time. It can't predict the future, but it shows you what buyers and sellers DID, and that's the most honest information in any market.
Free to play. No ads, no token, no account needed to start.
What this lesson covers
Line charts vs candlestick charts
A line chart connects closing prices, which is clean but shallow. A candlestick chart shows four prices for each period: where it opened, the highest, the lowest, and where it closed. Same data, way more story.
What you get asked
What does a price chart actually show?
Every point on a chart was a real trade: someone's money, someone's decision. That's why traders respect charts.
Compared to a line chart, a candlestick chart shows ___ information per time period.
Four data points (open, high, low, close) instead of one. Traders read candles like short sentences.
Match the letter to the price it stands for (OHLC)
OHLC. You'll see this abbreviation everywhere from now on.
True or false: because charts show the past, studying them is pointless.
Charts inform rather than predict. Where did buyers step in before? Where did sellers give up? History doesn't repeat exactly, but crowds are creatures of habit.
The rest of this unit
Read candlesticks, timeframes, trends and volume: the language of every chart.