An OHLC chart is a graphical representation of financial data in the form of vertical line segments that are plotted about the x axis and y axis. These charts utilize vertical line segments with horizontal line segments at each end. The vertical line represents price range and the horizontal lines represent opening and closing prices. OHLC means, “open-high-low-close.” Candlestick charts, and sometimes bar charts, are categorized as OHLC charts.
OHLC charts are employed in decision-making in the realm of finance. They are considered a critical aspect of technical analysis in the stock market. The line segments represent market behavior and the price range. An OHLC may also utilize color-coding. Certain colors are used to indicate a close that is higher than its open or a close that is lower than its open.