OHLC Chart Guide for Australians: Interpreting Market Moves in 2025

Whether you’re a seasoned trader or just dipping your toes into the Australian share market, understanding how to interpret OHLC (Open-High-Low-Close) charts is a game-changer. These charts offer a visual roadmap of price action, giving investors valuable clues about momentum, sentiment, and potential turning points.

What is an OHLC Chart?

At its core, an OHLC chart displays four key data points for a security over a specific period: the opening price, the highest price, the lowest price, and the closing price. Each period (be it a day, hour, or minute) is represented as a vertical line (showing the range from low to high), with horizontal ticks on the left (open) and right (close). This compact visual format packs a wealth of information into a single bar or candlestick.

• Open: The price at which trading started for the period

• High: The maximum price reached

• Low: The minimum price reached

• Close: The price at which trading ended for the period

For example, consider a daily OHLC bar for BHP Group shares on the ASX. If the open is $45, the high is $47, the low is $44.50, and the close is $46.80, the bar instantly conveys the day’s volatility and where sentiment landed at the close.

Why OHLC Charts Matter in 2025

In 2025, with Australian markets riding waves of volatility thanks to persistent inflation, AI-driven trading, and shifting RBA rate policies, OHLC charts have become even more valuable. Traders and investors are using these charts to:

• Spot market reversals: A bar with a long lower shadow may signal buyers stepping in, while a long upper shadow could indicate selling pressure.

• Gauge momentum: Consecutive bars with higher closes often suggest strong upward trends, while lower closes may flag downtrends.

• Plan entries and exits: The relationship between the open and close helps inform when to buy, sell, or hold.

With the ASX 200’s swings in early 2025, many local investors have turned to OHLC patterns—such as pin bars or engulfing bars—to anticipate short-term moves, particularly around key economic announcements.

Reading OHLC Patterns: Real-World Examples

Let’s break down how you might use OHLC charts in practice:

• Bullish Engulfing Bar: Suppose the Commonwealth Bank (CBA) shares open at $112, dip to $110, but then surge to close at $115—higher than the previous day’s close. This engulfing pattern could indicate renewed buying interest and a potential reversal from a downtrend.

• Doji Bar: Imagine Afterpay (now Block Inc.) opens and closes at nearly the same price, despite a wide high-low range. This doji bar reflects indecision in the market—often a precursor to a breakout.

• Pin Bar: If Woodside Energy shares show a bar with a tiny body but a long lower shadow, this suggests sellers drove the price down but buyers pushed it back up, hinting at possible upward momentum.

By combining OHLC analysis with volume and other technical indicators, savvy Australians are sharpening their market edge. In 2025, trading platforms like SelfWealth and CommSec offer customisable OHLC chart views for everything from blue-chip stocks to ETFs and crypto assets.

Tips for Making OHLC Charts Work for You

• Zoom out for context: Patterns are more reliable when viewed within broader market trends.

• Combine with news and fundamentals: Use OHLC bars alongside earnings reports and RBA policy updates to make holistic decisions.

• Leverage technology: Automated charting tools can highlight key OHLC patterns and alert you to trading opportunities in real time.

As the investing landscape evolves in 2025—with ESG, AI, and alternative assets in focus—mastering the basics of OHLC chart reading remains a timeless skill for Australians keen to navigate the markets with confidence.