Lesson 6 — The Four Key Price Data Points
Learn Open, High, Low and Close — the foundation of every price chart.
Every Trading Day Tells a Story
A share's price changes throughout the trading day. To describe that movement, charts use four important price points.
Meet OHLC
OHLC stands for Open, High, Low and Close. These four numbers summarise what happened to a share during a particular period.
1. Open Price
The Open is the price at which a share begins trading for the selected period.
On a daily chart, each candle has one daily Open. On a weekly chart, the Open represents the first trading price of that week.
2. High Price
The High is the highest price reached during the selected period.
The High tells us how far buyers were able to push the price during that period.
3. Low Price
The Low is the lowest price reached during the selected period.
The Low shows how far sellers were able to push the price down.
4. Close Price
The Close is the final recorded trading price for the selected period.
Traders often pay close attention to where the market finishes because the Close helps define the candle and is widely used by technical indicators.
Put the Four Numbers Together
These four numbers tell us the basic price story for the period.
From Numbers to a Candlestick
A candlestick converts the four OHLC values into a visual picture.
The Candle Body
The body shows the distance between the Open and Close.
The bigger the body, the larger the difference between the Open and Close.
The Wicks Show the Range
The lines above and below the candle body show where price travelled beyond the Open and Close.
What Does a Long Upper Wick Tell You?
A long upper wick means price travelled higher but finished well below that high.
What Does a Long Lower Wick Tell You?
A long lower wick means price travelled lower but recovered before the period finished.
Why OHLC Matters
🇦🇺 Australian Market Example
Imagine an ASX-listed share has the following daily data:
The share finished above its Open, so the period produced a bullish candle.
🧠 Chart Detective
A share opens at $8.00, reaches $9.50, falls to $7.60 and closes at $9.20. Which statement is correct?
Lesson Complete!
You now understand the four key price data points behind every candlestick.
Remember:
Open • High • Low • Close = OHLC
Next: Understanding Timeframes
Every price chart tells a story. To understand that story, technical analysts begin with four essential price points: Open, High, Low and Close (OHLC). These four numbers describe how a share moved during a specific period and form the foundation of candlestick charts.
In this lesson, Australian learners will discover what each price point means, how the four values create a candlestick, and why traders use them to understand market behaviour.
Key Learning Points:
- Open: The price at which the selected trading period begins.
- High: The highest price reached during that period.
- Low: The lowest price reached during that period.
- Close: The final recorded price for that period.
- OHLC: The four data points used to describe price movement.
- The relationship between Open and Close helps determine whether a candle is bullish or bearish.
- The distance between the High and Low shows the overall price range.
- Wicks show where price moved beyond the candle body.
Australian Example:
Imagine an ASX-listed share opens at $25.00, reaches a high of $26.80, falls to a low of $24.60, and finishes at $26.20. These four values provide a quick summary of the day’s trading activity and can be represented visually as a candlestick.
Key Takeaway:
Open + High + Low + Close = OHLC
Understanding these four numbers is essential before moving on to candlestick patterns, support and resistance, indicators and advanced technical analysis.