Open High Low Close (OHLC) Chart, We can only suggest this type of chart style or candlestick charting to draw your lines in the chart. Our favorite style is candlestick style but quite honestly it is up to you what you decide is best for you.
OHLC is more accurate than line charts because they show the price movement for the day. As a technical day trader this can give you a huge clue as to what happened during the day.
O.k, here is how you read a OHLC bar. The tick on the left represents the opening price. The tick on the right represents the closing pricing. The vertical bar displays the extreme high and low price movement for a particular stock during the day. Now, don't get confused when looking at weekly OHLC charts. The only difference here is the time frame you are looking at. The same principles apply as mentioned above. Same goes for monthly time frames.
Let us give you an example... on the OHLC chart below you can see that the opening price was $3.83, the extreme high for the day was $3.89, the extreme low was $3.69 and the closing price was $3.74.
So what does does this mean ? This means that the day circled in read was a bearish day. The closing price is lower than the opening price. Had you bought some shares on the opening and sold at the end of the day you would made a loss and vice-versa if you had bought in the opening and the closing price had close above the opening price you would have made a gain. It is that simple !