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FREE / FINANCEFD CHART SCHOOL

Chart School / Reading Charts

Chart anatomy and axes

Lesson 1 of 14 · about 1 min read, plus practice · Glossary

A price chart places time on the horizontal axis and price on the vertical axis. A line often joins closing prices; it leaves out movements within each period. Read the symbol, venue, currency, interval and adjustment setting before interpreting a shape. A linear scale spaces equal dollar changes equally. A logarithmic scale spaces equal percentage changes equally. The same history can look very different when the scale or visible date range changes.

Worked fictional example

Fictional River moves from $10 to $20, then $20 to $30. Each rise is $10, but the percentage rises are 100% and 50%. A linear chart gives those rises equal height.

Fictional example — synthetic daily data, not a live asset. Separate fictional daily OHLCV illustration for Chart anatomy and axes. Hollow body: close at or above open; filled body: close below open. Table provides exact values. Prices use a linear scale in illustrative US dollars. Equal spacing shows observed periods, not missing-session durations.

On a small screen, scroll the chart horizontally to read every label.

chart-chart-anatomy fictional candlestick chartCloses in observation order: 10, 12, 14, 16, 18, 20. Exact dates, OHLC and volume appear in the following table.$21$9Period 1: open 10, high 11, low 9, close 10Period 2: open 10, high 13, low 9, close 12Period 3: open 12, high 15, low 11, close 14Period 4: open 14, high 17, low 13, close 16Period 5: open 16, high 19, low 15, close 18Period 6: open 18, high 21, low 17, close 20

Observation order / daily periods →

Accessible data table and chart description

Separate fictional daily OHLCV illustration for Chart anatomy and axes. Hollow body: close at or above open; filled body: close below open. Table provides exact values.

Synthetic OHLCV observations; volume is fictional units
Date UTCOpenHighLowCloseVolume
2024-01-011011910100
2024-01-021013912120
2024-01-03121511140
2024-01-0414171316160
2024-01-0516191518180
2024-01-0618211720200

Legend: hollow body = close ≥ open; filled blue body = close < open. Wick = low to high. Direction is also readable from the table, without color.

What could invalidate this interpretation?

A claim that a steeper line proves faster percentage growth fails if the chart uses a linear scale or a changed date range.

A counterexample

A flat closing-price line can hide large intraperiod swings. A closing line alone cannot establish that trading was calm.

Check your understanding

Which axis normally shows time?

Does a closing-price line show every traded price?

Further learning

Original FinanceFD explanations and drawings. For additional context, see Fidelity’s overview of technical analysis, Fidelity’s RSI guide and Investor.gov’s investing introduction.

Learning progress

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