Chart Basics
Line, bar and candlestick charts, timeframes and how price data (OHLC) is built.
BeginnerChartVoyage turns price charts into a clear, visual journey — from your first candlestick to trends, indicators, patterns and disciplined risk management.
What you'll learn
Each module builds on the last, so you always know why a concept matters and where it fits on a real chart.
Line, bar and candlestick charts, timeframes and how price data (OHLC) is built.
BeginnerBody, wicks and the psychology behind dojis, hammers, engulfing and star patterns.
BeginnerHigher highs, lower lows, drawing trendlines and spotting when a trend is tiring.
BeginnerWhere buyers and sellers gather, role reversal, breakouts and false breakouts.
IntermediateSMA vs EMA, dynamic support, golden and death crosses, and avoiding lag traps.
IntermediateRSI, MACD and Stochastic — momentum, overbought/oversold and divergence.
IntermediateHead & shoulders, double tops/bottoms, triangles, flags and cup & handle.
AdvancedPosition sizing, stop-losses, risk-reward and building a trading journal.
AdvancedCandlestick gallery
A single candle tells a story of a battle between buyers and sellers. Context matters: a pattern means more at support, resistance or after a strong move.
Small body on top, long lower wick. Sellers pushed price down but buyers took it back — often seen near a bottom.
▲ Bullish reversal
Small body at the bottom, long upper wick after a rally. Buyers lost control by the close.
▼ Bearish reversal
Open and close are nearly equal. Indecision — the market is pausing to decide its next direction.
◆ Indecision
A big green candle fully covers the previous red body — buyers overwhelm sellers.
▲ Bullish reversal
A big red candle swallows the prior green body — sellers seize control at the top of a move.
▼ Bearish reversal
Big red, small indecision candle, then big green. A three-candle sign that a downtrend may be ending.
▲ Bullish reversal
Your roadmap
Move at your own pace. Practise each stage on paper or a demo account before moving on.
Understand how charts work.
Identify direction and key levels.
Add indicators with purpose.
Trade a plan, protect capital.
Cheat sheet
Indicators are derived from price and volume. Use one or two from different categories rather than stacking many that say the same thing.
| Indicator | Type | What it shows | Common reading |
|---|---|---|---|
| Moving Average (SMA/EMA) | Trend | Smoothed average price over N periods | Price above a rising MA suggests an uptrend |
| MACD (12, 26, 9) | Trend | Difference between two EMAs plus a signal line | MACD crossing above signal = momentum turning up |
| RSI (14) | Momentum | Speed of recent gains vs losses, 0–100 | Above 70 overbought, below 30 oversold |
| Stochastic | Momentum | Close relative to the recent high–low range | Crossovers in the 20/80 zones |
| Bollinger Bands | Volatility | MA with bands 2 standard deviations away | A "squeeze" often comes before a big move |
| ATR | Volatility | Average size of daily price range | Helps place stop-losses outside normal noise |
| On-Balance Volume | Volume | Running total of volume on up vs down days | Rising OBV confirms a price uptrend |
Rule #1
Great analysis means little without risk control. Many traders risk only 1–2% of their capital on a single trade, and decide the stop-loss before entering. Try the calculator to see how many shares fit your risk.
Check your compass
Test what you know. No sign-up, no score saved — just learning.
FAQ
Short answers to what beginners ask most often.
It is the study of price and volume charts to understand market behaviour and estimate probable future moves. It focuses on what price is doing rather than a company's financial statements (fundamental analysis).
No. It deals in probabilities, not certainties. Its real value is helping you plan entries, exits and risk with discipline.
Daily charts are a great starting point. They filter out much of the intraday noise and give you time to think before acting.
No. Many free charting platforms offer candlesticks, drawing tools and all the indicators covered here.
Mark up historical charts, write down your reasoning, and use paper trading or a demo account. Keep a journal and review your decisions weekly.
Bookmark ChartVoyage, start with Module 01, and practise one concept a day. Consistency beats intensity.
Begin with Chart Basics