Charts 

Charts are the language of trading. Once you understand charts, you begin to understand how to read the market.

. Candlestick

Definition

A candlestick represents one period of price movement and shows:

• Open Price
• High Price
• Low Price
• Close Price

Types

🟢 Bullish Candle = The price moved upward.

🔴 Bearish Candle = The price moved downward.

Gold Example

Gold opened at 3400 and closed at 3420.

➡️ This forms a Bullish (Green) Candle.

. OHLC

Definition

Every candlestick consists of four key price points:

• O = Open
• H = High
• L = Low
• C = Close

Example

Open = 3400

High = 3425

Low = 3395

Close = 3420

. Timeframes

Definition

A timeframe represents the amount of time covered by a single candlestick.

Common Timeframes

• M1 = 1 Minute
• M5 = 5 Minutes
• M15 = 15 Minutes
• M30 = 30 Minutes
• H1 = 1 Hour
• H4 = 4 Hours
• D1 = Daily
• W1 = Weekly
• MN = Monthly

Example

If you open an H1 chart, each candlestick represents 1 hour of price movement.

. Trend

Definition

A trend is the overall direction in which the market is moving.

Types

📈 Uptrend

📉 Downtrend

➡️ Sideways (Range)

Gold Example

Gold continues making Higher Highs and Higher Lows.

➡️ This is an Uptrend.

. Range

Definition

A range occurs when the market moves back and forth within the same price area without a clear trend.

Example

Gold is trading between 3380 and 3400.

This is called a Range Market.

. Market Structure

Definition

Market Structure is the overall pattern of price movement.

It helps determine whether the market is bullish or bearish.

Example

• Higher High + Higher Low = Bullish Structure
• Lower High + Lower Low = Bearish Structure

. Swing High

Definition

A Swing High is a temporary highest point in price before it starts moving downward.

Example

Gold: 3400 → 3425 → 3410

➡️ 3425 is the Swing High.

. Swing Low

Definition

A Swing Low is a temporary lowest point in price before it starts moving upward.

Example

3425 → 3400 → 3415

➡️ 3400 is the Swing Low.

. Higher High (HH)

Definition

A Higher High forms when a new high is created above the previous high.

Example

High 1 = 3400

High 2 = 3420

High 3 = 3450

➡️ Each new high is higher than the previous one.

. Lower Low (LL)

Definition

A Lower Low forms when a new low is created below the previous low.

Example

3400 → 3380 → 3360

➡️ These are Lower Lows.

. BOS (Break of Structure)

Definition

A Break of Structure (BOS) occurs when price breaks the previous market structure, confirming the continuation of a new direction.

Example

Gold was in a Downtrend.

Suddenly, the price closed above the previous Lower High.

➡️ This is a Bullish BOS.

. CHoCH (Change of Character)

Definition

CHoCH is the first indication that the market trend may be changing.

Example

The market was in a Downtrend.

For the first time, it formed a Higher High.

➡️ This could be a CHoCH.

. MSS (Market Structure Shift)

Definition

A Market Structure Shift (MSS) is a strong structural change that confirms a trend reversal.

Example

Downtrend:

LL → LH → LL

Then the price makes a strong move and closes above the previous Lower High (LH).

➡️ This is an MSS.

📊 Relationship

Trend
│
├── Uptrend
│     ├── Higher High (HH)
│     └── Higher Low (HL)
│
└── Downtrend
      ├── Lower High (LH)
      └── Lower Low (LL)

Structure Break
│
├── BOS = Trend Continuation
├── CHoCH = Early Trend Change
└── MSS = Strong Trend Reversal

⭐ Pro Tips

• Always identify the trend on the Higher Timeframe (H4 or D1) first.
• Then look for trade entries on the H1 or M15 timeframe.
• Never make a trading decision based on a single candlestick; always analyze the complete market structure.
• Combine BOS, CHoCH, and MSS with Liquidity and Support/Resistance for higher-probability trade setups.

🎯 Practice

Open the Gold (XAUUSD) H1 chart and:

• Mark the Swing Highs and Swing Lows.
• Identify the current trend.
• Check whether a BOS, CHoCH, or MSS has formed.