Table of Contents
What Are Candlestick Charts?
How To Create Candlestick Charts?
What Are The Different Types Of Candlestick Charts?
Hollow
A hollow bar is always produced when the close is greater than the open. Because the price was allowed to increase over the period, this type of candle shows purchasers were in command of the security, but this does not give enough information to anticipate what would happen next.Filled
Each candlestick displays the price movement for the day. The empty candlesticks, in particular, let us know that security rose after the market opened. A filled candlestick signifies a security’s decline following the open.Green/White
Long white/green candlesticks show intense purchasing pressure, which often denotes a bullish price trend.Red/Black
A red candlestick on a price chart represents a security whose closing price is lower than its opening and prior closing prices. If the close is lower than the previous but higher than the open, a candlestick may also be red; in this scenario, it will typically appear hollow.How To Read Candlestick Charts?
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(); });Candlestick or trading charts show a wide range of data, including:
- Open price
- Close price
- Highest price
- Lowest buy price
- Patterns and trends in share prices
- Emotions of trades
Are There Different Candlestick Chart Patterns?
Here are a few of the most popular candlestick patterns that predict price movement and momentum.Hammer Candlestick
The Hammer candlestick, which can be seen at the bottom of a downtrend, denotes a potential market reversal (in the direction of the bulls). For example, when a stock market opens, goes significantly lower throughout the day, then rallies back to close to the opening price, it forms the candlestick pattern known as a hammer.Shooting Star Candlestick
A Shooting Star candlestick is formed when a stock trades significantly higher than the opening price and then recovers later in the day to conclude the day below or very near the opening price. It is an inverted Hammer.Doji Candlestick
Doji candlesticks appear when the open and close of equities are nearly equal. A cross or a plus sign can be seen in the shape of the candlestick that is created by altering the length of the upper and lower shadows. A Doji indicates uncertainty for both buyers and sellers.Bullish Engulfing Candlestick
A Bullish Engulfing form occurs when a huge hollow candlestick follows a small solid candlestick and completely “engulfs” the smaller candlestick. It denotes that sellers can no longer affect how much a stock’s price changes.Bearish Engulfing Candlestick
A larger solid candlestick that follows a smaller hollow candlestick and totally “engulfs” the small candlestick is known as a Bearish Engulfing pattern. It implies that the buyers no longer control how much a stock’s price will move.Bullish Harami Candlestick
A candlestick chart indication used to identify bear trend reversals is called a Bullish Harami. Typically, a tiny price increase (shown by a white candle) that can be handled within the equity’s recent downward price movement (represented by a black candle) signals it.Bearish Harami Candlestick
A Japanese candlestick pattern with two bars is known as a Bearish Harami, which indicates that prices may shortly shift downward. A lengthy white candle precedes a small black candle in the motif.Hanging Man Candlestick
During an upswing, a Hanging Man candlestick appears and signals the possibility of a price decline. The candle consists of a short higher shadow, a lengthy lower shadow, and a small genuine body. The dangling man demonstrates that consumer interest in buying is beginning to rise.Dark Cloud Cover Candlestick
A down candle (usually black or red) begins above the close of the preceding up candle (often white or green). Subsequently, it closes below the middle of the up candle, forming the bearish reversal candlestick pattern known as Dark Cloud Cover. The pattern is notable because it demonstrates a change in momentum from upward to downward. An up and down candle combines to form the design. Traders anticipate the price will drop even more on the third candle. It is known as confirmation.- Pricing and volume plot are combined, and the volume plot has an on/off button.
- There are three price charts: candlestick charts, bar charts, and line charts.
- In addition, the tooltip and the hover bar can be interacted with.
- On the chart, zones and trend lines can be drawn.
- The ability to show any distinct trend sets on a chart can be changed to show technical indicators.
- Ability to supply missing information.
- The capacity to highlight specific candles.
- On the x-axis, you can choose to draw vertical indication lines at any location.