# Visual Library

> A visual library of the most useful trading diagrams: candlestick anatomy, support and resistance, trends, option payoffs, drawdowns and the order book.

Source: https://learn.tradelabsai.com/reference/visual-library/  
Track: Reference · Level: Beginner · Updated: 2026-10-03  
Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice.  
Cite as: TradeLabs Learn, "Visual Library", https://learn.tradelabsai.com/reference/visual-library/

Some ideas are easier to see than to read. This page gathers the diagrams that explain the core concepts of trading, each with a short explanation and a link to the full lesson. Use it as a quick visual refresher before a session, or as a starting point to explore the school. All diagrams are simplified illustrations rather than real market data.

## Candlestick anatomy

*Figure: The body spans open to close; the wicks show the high and low of the period.*

A candle summarises one period of trading. A green or hollow body means price closed above where it opened; red means it closed below. Long wicks show prices that were reached but rejected. See [How to Read Candlesticks](https://learn.tradelabsai.com/candlesticks/how-to-read-candlesticks/).

## Support and resistance

*Figure: Price often reacts at levels where it turned before.*

Support is a price zone where buying has stopped declines; resistance is where selling has stopped rallies. When a level breaks, it often switches roles. See [Support and Resistance](https://learn.tradelabsai.com/price-action/support-and-resistance/) and [Role Reversal and Retests](https://learn.tradelabsai.com/price-action/role-reversal-and-retests/).

## Uptrend structure

*Figure: An uptrend makes higher highs (HH) and higher lows (HL).*

A trend is defined by its swings. An uptrend continues while each pullback stays above the previous low. A break below the last higher low is an early warning of change. See [Trend Structure: Higher Highs and Lower Lows](https://learn.tradelabsai.com/price-action/higher-highs-and-lower-lows/) and [Market Structure Basics](https://learn.tradelabsai.com/price-action/market-structure-basics/).

## Option payoffs at expiry

*Figure: The loss is limited to the premium; the gain grows beyond the strike.*

A long call profits when price rises above the strike plus the premium; a long put profits when price falls below the strike minus the premium. Short positions are the mirror image. See [Option Payoff Diagrams](https://learn.tradelabsai.com/options/option-payoff-diagrams/) and the [Option Payoff Calculator](https://learn.tradelabsai.com/tools/option-payoff-calculator/).

## Drawdown and recovery

*Figure: Drawdown is the fall from peak to trough; recovery is the climb back to the old peak.*

The deeper the drawdown, the larger the gain needed to recover: 50% down needs 100% up. See [Maximum Drawdown](https://learn.tradelabsai.com/portfolio/maximum-drawdown/) and the [Drawdown Recovery Calculator](https://learn.tradelabsai.com/tools/drawdown-recovery-calculator/).

## The order book

*Figure: Resting buy orders sit below the price and sell orders above; the gap between the best of each is the spread.*

The order book shows the liquidity available at each price. Large orders take liquidity from several levels, moving the price. See [The Order Book and Market Depth](https://learn.tradelabsai.com/market-structure/the-order-book-and-market-depth/) and [Market Data Levels: Level 1, 2 and 3](https://learn.tradelabsai.com/programming/level-2-data/).

## How to use these diagrams

Each diagram captures one idea in its simplest form. Real charts are messier: candles overlap levels, trends pause and reverse, and order books change every second. A good habit is to take one diagram at a time, open a live chart and find three real examples that match it and three that do not. Note what happened next in each case. This builds pattern recognition grounded in real outcomes rather than idealised pictures, and it protects you from seeing patterns everywhere. When a concept clicks, follow the link to the full lesson for the details, worked examples and common mistakes. See [Trading Journal](https://learn.tradelabsai.com/start-here/trading-journal/) and [How This School Works](https://learn.tradelabsai.com/start-here/how-this-school-works/).

## Diagrams elsewhere in the school

Many lessons include their own diagrams: candlestick patterns such as the [Doji](https://learn.tradelabsai.com/candlesticks/doji/) and [Engulfing Patterns](https://learn.tradelabsai.com/candlesticks/engulfing-patterns/), chart patterns such as [Head and Shoulders](https://learn.tradelabsai.com/chart-patterns/head-and-shoulders/), bond concepts such as [Convexity](https://learn.tradelabsai.com/bonds-credit/convexity/) and [Yield Curves](https://learn.tradelabsai.com/bonds-credit/yield-curves/), and options strategies such as the [Iron Condor](https://learn.tradelabsai.com/options/iron-condor/). Browse the tracks in the left menu to find them.

## Frequently asked questions

### What is the best way to learn chart patterns?

Study the diagrams, then find real examples on charts and track how they played out, so you see both successes and failures.

### Are these diagrams based on real data?

No. They are simplified illustrations of concepts; the linked lessons include worked examples.

### Where can I find formulas for these concepts?

The [Formula Library](https://learn.tradelabsai.com/reference/formula-library/) collects them in one place with links to calculators.

Next, compare the two sides of every trade in [Long vs Short](https://learn.tradelabsai.com/reference/long-vs-short/).

## Continue learning

- Next lesson: [Long vs Short](https://learn.tradelabsai.com/reference/long-vs-short/)
- Previous lesson: [Formula Library](https://learn.tradelabsai.com/reference/formula-library/)
- Related: [Formula Library](https://learn.tradelabsai.com/reference/formula-library/): Every key trading formula in one place: returns, risk, position sizing, ratios, options, bonds, futures and forex, each with a link to a full lesson and calculator.
- Related: [Trading Glossary A to Z](https://learn.tradelabsai.com/reference/trading-glossary-a-to-z/): A plain English trading glossary from A to Z. Short definitions of key terms in stocks, forex, futures, options, crypto and risk, each linked to a full lesson.
- Related: [How to Read Candlesticks](https://learn.tradelabsai.com/candlesticks/how-to-read-candlesticks/): Learn to read candlestick charts: open, high, low and close, bodies and wicks, timeframes, and what a candle tells you about buyers and sellers.
- Related: [Option Payoff Diagrams](https://learn.tradelabsai.com/options/option-payoff-diagrams/): Payoff diagrams show an option position's profit or loss at expiration across prices. Learn to read and draw them for single options and multi leg strategies.
- Related: [Support and Resistance](https://learn.tradelabsai.com/price-action/support-and-resistance/): Support is where buying tends to stop a fall; resistance is where selling tends to stop a rise. Learn to draw levels, judge their strength and trade them well.
