What Is OHLC in Share Market Charts? Explained with Examples

What Is OHLC in Share Market Charts? Explained with Examples

ByMatthew Wright

When you look at a stock chart, especially candlestick or bar charts, you often come across the term OHLC. It stands for Open, High, Low, Close—the four most important data points that summarize a stock’s price movement during a specific time period.

Whether you’re an intraday trader or a long-term investor in the Indian stock market, understanding OHLC can help you read charts more accurately and make better trading decisions.

1. What Does OHLC Stand For?

TermMeaning
OpenThe price at which a stock starts trading for the day or time period
HighThe highest price reached during the trading period
LowThe lowest price reached during the trading period
CloseThe final price at the end of the trading period

These four values form the basis of candlestick and bar charts used in technical analysis.

2. Why Is OHLC Important in Indian Stock Charts?

OHLC helps Indian traders understand:

  • Market sentiment (bullish or bearish)
  • Volatility in the price movement
  • Support and resistance zones
  • Entry/exit points based on price action

OHLC is especially useful for NSE intraday charts, Bank NIFTY scalping, and positional trades in Indian equities.

3. Example of OHLC in Daily Candlestick Chart

Let’s take an example of a stock—Infosys (INFY) on a particular day:

  • Open: ₹1,450
  • High: ₹1,480
  • Low: ₹1,430
  • Close: ₹1,470

What it shows:

  • Price opened at ₹1,450 and closed higher at ₹1,470 → bullish day
  • It touched a high of ₹1,480 and a low of ₹1,430 → ₹50 range of movement
  • Traders might interpret this as a positive close with mild volatility

4. How OHLC Appears on Different Chart Types

✅ Candlestick Chart:

  • Body: Between open and close
  • Wicks (Shadows): High and low points
  • Color:
    • Green (or White): Close > Open → Bullish
    • Red (or Black): Close < Open → Bearish

✅ Bar Chart:

  • Vertical line = High to Low
  • Left tick = Open price
  • Right tick = Close price

5. How Traders Use OHLC in India

  • Intraday traders use OHLC to define breakout zones (e.g., high/low of first 15 minutes)
  • Swing traders observe OHLC on daily/weekly charts to gauge momentum
  • Investors use weekly OHLC charts to determine trend strength or reversal signals

6. OHLC in Multi-Timeframe Analysis

You can use OHLC for different timeframes:

  • 5-Min OHLC: Intraday scalping
  • Hourly OHLC: Short-term trend tracking
  • Daily/Weekly OHLC: Swing or positional trading

Tip: Always analyze higher timeframe OHLC to understand the bigger market picture before executing a trade.

7. Tools to View OHLC in Indian Market

  • TradingView India: Candlestick and bar chart with OHLC tooltips
  • Chartink: OHLC-based scanners and screener
  • Zerodha Kite: Real-time charting with OHLC display
  • Upstox Pro: Candlestick-based OHLC view

Conclusion

OHLC is the backbone of technical analysis in the Indian stock market. It simplifies price movement into four key numbers, giving you a clear view of what happened during a trading session. By learning how to read and interpret OHLC properly, you can make better entry and exit decisions across any stock, index, or trading strategy.

FAQs

Q1. What is the most important value in OHLC?
All are important, but the close price is often most watched as it reflects market sentiment at the end of the period.

Q2. Can I use OHLC for intraday trading?
Yes, many Indian traders use 5-minute or 15-minute OHLC to trade breakouts and reversals.

Q3. Does OHLC work for all Indian stocks?
Yes, it applies to all stocks listed on NSE and BSE, across all timeframes.

Q4. Is OHLC better than indicators like RSI or MACD?
OHLC gives raw price data; it’s best used with indicators for confirmation and accuracy.

Q5. How do I scan stocks using OHLC filters?
Use platforms like Chartink to scan based on today’s OHLC values or candlestick patterns.