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| Introduction |
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The Bar chart was invented by the westerners and has been practised since trading commenced. It has two horizontal lines and a vertical line. The left horizontal line is the opening price and the right horizontal line is the closing price. The vertical line is the trading range. The high of the vertical line is the highest price traded and the low of the vertical line is the lowest price of the time frame you are looking at. This is the basics in Bar chart.
The Candlestick chart, which is our favourite, is now getting very popular. It was invented by the Japanese but now also popular among the westerners. In the candlestick there are two types; the positive candle (Green) and the negative candle (Red). The positive candle is when the price closed above the opening price and the negative candle is the price closed below the opening price. The coloured part is called the body and a thin line above and below the candle is called shadows, the tip is the highest price traded when it is above the body and the lowest price traded when it is below the body. Off course candlestick comes in different shapes and sizes, and each candle has got its meaning. As you know picture speaks a thousand words.
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