what is an ohlc chart 
an ohlc chart is a type of bar chart that shows open high low and closing prices for each period ohlc charts are useful since they show the four major data points over a period with the closing price being considered the most important by many traders 1the chart type is useful because it can show increasing or decreasing momentum when the open and close are far apart it shows strong momentum and when the open and close are close together it shows indecision or weak momentum the high and low show the full price range of the period useful in assessing volatility there several patterns traders watch for on ohlc charts understanding ohlc chartsohlc charts consist of a vertical line and two short horizontal lines extending to the left and right of the horizontal line the horizontal line extending to the left represents the opening price for the period while the horizontal line extending to the right represents the closing price for the period the height of the vertical line represents the intraday range for the period with the high being the period s high and the low of the vertical line being the period s low the entire structure is called a price bar 