There are public rules for graphing price movements on the charts of various market assets. There are two main types of designation:
Candles
They were invented by the Japanese rice merchant Homma Munehisa, which is why they got the name - Japanese candles.
The candlestick gives information about deals within the selected period:
- Opening - the initial price of the period, the price of the first deal. - High - the maximum price of the period - Low - reasonable price of the period - Close - the closing price of the period, the price of the last deal. - The body of the candle is the distance between the open and close. - Candle shadow - deviations from the opening and closing prices, maximum and minimum values of prices.
Depending on which direction the price went: rose or fell - the candlestick can be bearish or bullish.
Bars
This type of image is not much different from candles. They consist of exactly the same parts and display all the same information.
The bar is rather a more compact candlestick image. Instead of a full-fledged "body", only a vertical stroke is displayed.
What kind of depiction of price movements do you prefer?
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
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