Invest in your preferred assets instantly

ForexCT

Free mobile app

GET OUR FREE APP

    Candlestick Charts

    The candlestick chart is similar to a bar chart, but it differs in the way that it is visually constructed. Similar to the bar chart, the candlestick also has a thin vertical line showing the period's trading range. The difference comes in the formation of a wide bar on the vertical line, which illustrates the difference between the open and close. And, like bar charts, candlesticks also rely heavily on the use of colors to explain what has happened during the trading period. However, a major problem with the candlestick color configuration is that different sites use different standards; therefore, it is important to understand the candlestick configuration used at the chart site you are working with. There are two color constructs for days up and one for days that the price falls. When the price of the currency is up and closes above the opening trade, the candlestick will usually be white or clear. If the currency has traded down for the period, then the candlestick will usually be red or black, depending on the site. If the currencies price has closed above the previous day's close but below the day's open, the candlestick will be black or filled with the color that is used to indicate an up day.