How Do I Change OHLC Bars to Candle Bars?



Introduction to OHLC and Candle Bars

OHLC (Open, High, Low, Close) bars and candle bars are two types of charting techniques used in financial markets. Both methods provide visual representations of price movements over a specific time period, offering valuable insights for traders and investors. Understanding how to switch between OHLC bars and candle bars is crucial for selecting the right tool to analyze market trends efficiently.


What Are OHLC Bars?

OHLC bars, also known as bar charts, display four key pieces of data for each time interval: the opening price, highest price, lowest price, and closing price. Each bar has a vertical line representing the range between the highest and lowest prices, with horizontal ticks on the left for the opening price and on the right for the closing price.


While OHLC bars are effective in showing price movements, they can sometimes lack the clarity needed to visually interpret market trends. Traders often find them harder to read compared to candlestick charts, which offer a more intuitive approach to identifying price action.


What Are Candle Bars?

Candle bars, or candlestick charts, are similar to OHLC bars in that they represent the same data points (open, high, low, close). However, they display this data in a more visually distinct manner. Each candlestick consists of a “body” representing the range between the opening and closing prices, and “wicks” (also called shadows) extending above and below the body to indicate the high and low prices.


The body of the candle is often filled or colored to show whether the price closed higher (bullish) or lower (bearish) than it opened. This color-coded feature makes candlestick charts particularly popular for traders, as they help identify market trends at a glance.


Why Switch From OHLC Bars to Candle Bars?

Switching from OHLC bars to candle bars is a simple yet effective way to improve your market analysis. Candlestick charts are easier to interpret due to their visual clarity and intuitive nature. They also allow traders to recognize patterns like doji, engulfing candles, or hammers that can indicate potential market reversals or continuations.


Candlestick patterns are often used in conjunction with other indicators to enhance the accuracy of market predictions, making them a valuable tool for technical analysis.


How to Change OHLC Bars to Candle Bars

Most trading platforms offer the option to switch between OHLC and candle bar views with a simple toggle. Typically, the process involves selecting the chart type from the platforms settings or chart options. Here’s how you can do it:


 
Open your trading platform and load the chart for the asset youre interested in.
 
Locate the chart type settings (often under “Chart Settings” or “View”).
 
Select “Candlestick” as the preferred chart style.
 
Your chart will now display candle bars instead of OHLC bars, giving you a clearer visual representation of price action.


Key Features of Candle Bars

Candle bars offer several unique features that make them stand out from OHLC bars:


 
Visual Clarity: The body and wicks are color-coded, which allows for faster and easier interpretation of market sentiment.
 
Pattern Recognition: Candlestick patterns like the doji, hammer, and engulfing pattern can help identify potential price movements, making candlesticks a powerful tool for technical analysis.
 
Market Sentiment: The filled or hollow body of the candlestick provides insight into whether the market is bullish or bearish during a particular period.


Benefits of Using Candle Bars

The benefits of using candle bars in your trading strategy are undeniable. They make price action easier to understand, improve your ability to spot patterns, and help you make more informed decisions. Here’s why you should consider using them:


 
Faster Decision-Making: The visual representation of candlestick charts lets traders quickly grasp market trends, leading to quicker and more confident decision-making.
 
Clearer Patterns: Candlestick patterns provide clear indications of market reversals, breakouts, and trends, which can significantly enhance your trading accuracy.
 
Improved Analysis: When combined with other technical indicators, candlestick charts offer a more complete view of the market, improving your overall analysis and predictions.


Conclusion

Switching from OHLC bars to candle bars is a simple yet powerful adjustment that can improve your charting and analysis. With their visual clarity and intuitive design, candle bars make market trends easier to understand and trading decisions more precise. Whether youre a beginner or a seasoned trader, candlestick charts are an essential tool for successful market analysis.


Try switching to candlestick charts today and experience the difference for yourself—make every trade count!