Chart Types Overview

The most widely used chart type in technical analysis. Each "candle" displays four key price points: open, high, low, and close (OHLC) for a given time period. The body shows the open-to-close range, while the wicks (shadows) show the high and low extremes. Green (or white) candles indicate a price rise; red (or black) candles indicate a decline. Patterns formed by one or more candles — such as doji, engulfing, or hammer — are used to forecast short-term price direction.

A Japanese charting technique that filters out minor price noise by drawing new lines only when price moves beyond a defined threshold (typically 3 lines). Unlike time-based charts, line break charts are purely price-driven. A white (rising) line is drawn when price closes above the previous high; a black (falling) line appears when price breaks below the previous low. This makes trend identification very clean and removes insignificant fluctuations.

A classic chart type that focuses exclusively on price movement, ignoring time entirely. Rising prices are represented by columns of X's; falling prices by columns of O's. A new column only starts when price reverses by a set amount (the "box size" × "reversal amount"). P&F charts excel at identifying strong support/resistance levels, trend changes, and price targets — making them especially useful for longer-term analysis and filtering market noise.

Another time-independent chart, Renko uses fixed-size "bricks" that are only drawn when price moves by a defined amount in one direction. Each new brick is placed diagonally up (rising) or down (falling) only when the threshold is met. Renko charts produce very smooth, easy-to-read trend lines and are popular for spotting support/resistance and breakout opportunities without the visual clutter of time-based charts.

A modified candlestick style that uses averaged price data (rather than raw open/high/low/close) to produce smoother candles and clearer trend visualization. Heikin Ashi candles are calculated using formulas that incorporate the prior candle's values, reducing whipsaws and making it easier to stay in trends. The trade-off is that exact price levels are slightly different from actual market prices, so Heikin Ashi is best used as a trend filter alongside traditional analysis.

A variation of the standard candlestick that adds a second layer of information using filled vs. hollow bodies. If the close is higher than the open, the body is hollow (unfilled); if lower, it is filled. Additionally, if the close is higher than the previous close, the candle is colored bullish, and vice versa. This dual-encoding makes it easier to distinguish between upward momentum days and downward momentum days at a glance.

Range bars are constructed based solely on price range — each bar is only completed when price moves a specified range from high to low, regardless of how much time passes. This eliminates the distortion of slow, low-volatility periods where many time-based bars are created with little price movement. Range bars give traders a consistent view of volatility and help identify breakout levels more objectively.

A Japanese chart type that uses a series of vertical lines and directional changes to track price movement, ignoring time. A thin line (yin) is drawn when price falls; a thick line (yang) appears when price rises. The chart reverses direction only when price moves beyond a set reversal amount. Kagi charts are particularly effective for identifying buy/sell signals based on line thickness changes and the penetration of prior highs or lows.

A modern, innovative chart type that overlays volume distribution data directly onto price candles in the shape of a teardrop or raindrop. Each raindrop shows where the majority of trading volume occurred within a candle's price range, revealing the "volume-weighted" story behind the move. This helps traders understand whether buying or selling pressure was concentrated near the top or bottom of the candle — valuable context that traditional candlesticks cannot provide.