Table of Contents
What Are The Components Of A Candlestick Chart?
How To Start Making A Candlestick Chart?
To generate a Candlestick Chart, data collection containing the open, high, low, and close values for each time period you choose to display is required. The candlestick’s “body” (sometimes referred to as “the genuine body”) is the hollow or filled component of the candlestick. The shadows, also known as “wicks” and “tails,” are the long, thin lines above and below the body that depicts the high/low range. The top of the higher shadow and the bottom of the lower shadow serve as markers for the high and low, respectively. A hollow candlestick shows that the closing stock is higher than its opening price, with the bottom of the body indicating the opening price and the top of the body reflecting the closing price. A full candlestick is drawn, with the top of the body indicating the opening price and the bottom of the body representing the closing price. This is if the stock closes lower than its initial price. Learn more on how to create a Candlestick Chart.How Are Candlestick Charts To Be Read?
Promise.all([
loadData(
"https://s3.eu-central-1.amazonaws.com/fusion.store/ft/data/candlestick-chart-data.json"
),
loadData(
"https://s3.eu-central-1.amazonaws.com/fusion.store/ft/schema/candlestick-chart-schema.json"
)
]).then(function(res) {
const data = res[0];
const schema = res[1];
const dataStore = new FusionCharts.DataStore();
const dataSource = {
chart: {},
caption: {
text: "Apple Inc. Stock Price"
},
subcaption: {
text: "Stock prices from January 1980 - November 2011"
},
yaxis: [
{
plot: {
value: {
open: "Open",
high: "High",
low: "Low",
close: "Close"
},
type: "candlestick"
},
format: {
prefix: "$"
},
title: "Stock Value"
}
]
};
dataSource.data = dataStore.createDataTable(data, schema);
new FusionCharts({
type: "timeseries",
renderAt: "chart-container",
width: "100%",
height: "500",
dataSource: dataSource
}).render();
});
What Patterns Can Candlesticks Form?
Discussed below are some basic chart patterns formed by Candlesticks.Bearish Engulfing Pattern
A Bearish Engulfing pattern is when a giant solid candlestick follows a smaller, hollow candlestick and completely “engulfs” the smaller candlestick. It means that purchasers no longer have any influence over how much a stock will fluctuate in price.Bullish Engulfing Pattern
When a giant hollow candlestick follows a tiny solid candlestick that totally engulfs the smaller candlestick, a pattern known as a Bullish Engulfing form. It means the sellers no longer have any influence on the price movement of a stock.Bullish Hammer
A hammer candlestick forms when a stock goes noticeably lower than the beginning price and then rises later in the day to end above or close to the opening price.Bullish Shooting Star
A shooting star candlestick is created when a stock trades much higher than the beginning price and then rebounds later in the day to end below or close to the opening price. It is an upside-down hammer.Doji
When the open and close of stocks are almost equal, Doji candlesticks result. The candlestick that results from varying the duration of the top and lower shadows resemble a cross, an inverted cross, or a plus sign. When there is a Doji, both buyers and sellers appear uncertain.Candlestick Chart Example
How To Set Chart Type For The Price Chart?
A candle chart, a bar chart, or a line chart can all display the price chart. Set the plotPriceAs property to a candlestick, bar, or line to show the price chart as needed.{
"chart": {
"plotPriceAs" : "line"
}
}
This is an example of a candlestick chart with a line chart for the price:
Why Is FusionCharts The Best For Creating Candlestick Charts?
- Integrated pricing and volume plot with an on/off switch for the volume plot.
- Price charting choices include candlestick, bar, and line charts.
- Both the hover bar and the tooltip are interactive.
- Draw zones and trend lines.
- Possibility to display any number of individual trend sets on a chart that may be altered to display technical indicators.
- The ability to provide the lacking info.
- The ability to spotlight particular candles.
- There is an option to draw vertical indicator lines on the x-axis at any position.