Charts for Beginners
Line and candlestick charts, OHLC, support and resistance — the visual language of price.
In Simple Words
A line chart connects closing prices. A candlestick shows four prices per period: open, high, low and close (OHLC). A green candle usually means price rose in that period; red means it fell. Support is a price level where buyers tend to step in; resistance is where sellers tend to act.
Why It Matters
Charts are how traders read price action. Knowing the basics prevents misreading noise as signal.
Key Terms
Open, High, Low, Close — the four prices a candle shows.
A price level where buying tends to appear.
A price level where selling tends to appear.
Price moving beyond support or resistance — which can be real or false.
How to Interpret It
A breakout above resistance can signal a move higher — but false breakouts are common, so traders wait for confirmation rather than acting on the break alone.
Beginner Mistakes
- Assuming every breakout succeeds.
- Reading color without checking the actual OHLC values.
Try It Yourself
Open a chart in Warifin, identify one support and one resistance level, and describe what a breakout would mean — and the risk of a false breakout.
Key Takeaway
Charts show price action — but breakouts can be false. Wait for confirmation.
Open the real tool to practice.
Knowledge Check
Choose an answer, then check.1. A candlestick shows…
2. A false breakout is…
Next Lesson
Indicators & Their Limits
Technical Analysis Basics
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