Learning path · Lesson 2 of 8
Lesson 2 of 8
In this lesson
- Read open, high, low and close
- Separate timeframe from expiry
- Recognise the limits of a chart
A candle summarises four prices
Each completed candle summarises the open, high, low and close for its chart interval. The body runs between the opening and closing prices. The thin wick reaches the high and low. A candle still forming can change before its interval ends.
In the illustration below, price opens at 100, reaches a high of 104 and a low of 99, and closes at 103. Those numbers describe that interval; they do not say what the next candle will do.
The chart timeframe is not the trade expiry
A chart timeframe controls how much time each candle represents. A trade expiry controls when an order is settled. Changing the chart timeframe does not automatically change an order’s expiry.
QUOBIN offers chart timeframes alongside separate order-timing controls. As a practice task, change the chart interval, then look at the order ticket and check that you still understand the selected expiry.
Use one chart tool at a time
Line, candle and bar views present price history in different ways. Indicators and drawing tools add another view of that history. Start with an uncluttered chart and learn what one tool measures before adding more.
Draw a line, pan the chart and observe its position. If you try an indicator, note its settings and the timeframe. A tool can help you describe what has happened; it cannot guarantee an outcome.
Read the market label as well as the chart
Check the symbol, market type and available trading hours. An OTC-labelled instrument should not be assumed to reproduce the price on an external exchange. Quotes and settlement depend on the selected instrument and the platform’s applicable terms.
Use the terminal’s recorded entry and closing prices when reviewing a practice result. A screenshot from another source or a candle viewed at a different interval may show different information.
Your demo exercise
Try this at your own pace
- Pick one demo instrument and identify its market label.
- Describe the open, close, high and low of a completed candle.
- Change the chart timeframe and separately check the trade expiry.
Select Demo Account before following any trading exercise.
Independent reading
Put it into words
Check your understanding
Answer all 3 questions to check the lesson. You can review your answers and try again.