Candlestick Chart

A candlestick chart displays price movements over time using candlestick-shaped bars that show the opening, high, low, and closing prices for each time period. The body of the candlestick represents the range between open and close prices, while wicks (or shadows) show the high and low points. Color coding indicates whether the price increased (typically green) or decreased (typically red) during the period.

Best used for:

• Stock price analysis and trading
• Cryptocurrency price tracking
• Commodity price visualization
• Foreign exchange (forex) analysis
• Any OHLC (Open-High-Low-Close) data visualization
• Technical analysis and pattern recognition

Common Use Cases

Financial Trading

• Stock market analysis
• Cryptocurrency price movements
• Forex trading pairs
• Commodities (gold, oil, etc.)
• Options and futures contracts
• Intraday trading patterns

Market Analysis

• Price trend identification
• Support and resistance levels
• Volatility assessment
• Pattern recognition (doji, hammer, engulfing, etc.)
• Volume-price analysis
• Market sentiment visualization

Economic Research

• Historical price analysis
• Correlation studies
• Market behavior research
• Algorithmic trading strategy development
• Risk assessment and volatility studies

Options

Date/Time

Required - Column containing the time period for each candlestick.

Each row represents one time period (day, hour, minute, etc.). Must be in chronological order.

Open

Required - Opening price for the period.

The price at the start of the time period.

High

Required - Highest price during the period.

The maximum price reached during the time period.

Low

Required - Lowest price during the period.

The minimum price reached during the time period.

Close

Required - Closing price for the period.

The price at the end of the time period.

Settings

Hide Empty Values

Optional - Exclude periods with no data.

Increasing Color

Optional - Color for bullish (increasing) candles.

Specify color for candles where close > open (price increased).

Examples: green, #00ff00, rgb(0, 255, 0)

Decreasing Color

Optional - Color for bearish (decreasing) candles.

Specify color for candles where close < open (price decreased).

Examples: red, #ff0000, rgb(255, 0, 0)

Understanding Candlestick Components

     ┃ ← High (wick/shadow)
     ┃
   ┏━┻━┓
   ┃   ┃ ← Body (Open to Close)
   ┗━┳━┛
     ┃
     ┃ ← Low (wick/shadow)

Bullish Candle (Green)

• Close > Open: Price increased
• Body: From open (bottom) to close (top)
• Color: Green (or white in traditional charts)
• Interpretation: Buying pressure, upward momentum

Bearish Candle (Red)

• Close < Open: Price decreased
• Body: From close (bottom) to open (top)
• Color: Red (or black in traditional charts)
• Interpretation: Selling pressure, downward momentum

Doji Candle

• Close ≈ Open: Little price change
• Small body: Open and close nearly equal
• Interpretation: Indecision, potential reversal

Wicks/Shadows

• Upper wick: Shows rejection of higher prices
• Lower wick: Shows rejection of lower prices
• Long wicks: High volatility
• No wicks: Price opened/closed at extremes

Common Candlestick Patterns

Single Candle Patterns

Doji: Open = Close, indecision signal Hammer: Long lower wick, small body at top, potential reversal Shooting Star: Long upper wick, small body at bottom, potential reversal Spinning Top: Long wicks both sides, indecision

Multi-Candle Patterns

Engulfing: Large candle completely engulfs previous candle Morning Star: Bullish reversal (3 candles) Evening Star: Bearish reversal (3 candles) Three White Soldiers: Three consecutive bullish candles

Tips for Effective Candlestick Analysis

1. Choose Appropriate Time Frame:

   • Day trading: 1-5 minute candles
   • Swing trading: Hourly or daily candles
   • Long-term investing: Daily or weekly candles
   • Match time frame to trading strategy

2. Combine with Volume:

   • High volume confirms strength of movement
   • Low volume suggests weak conviction
   • Volume spikes indicate significant interest
   • Consider adding volume bars below candlesticks

3. Identify Support and Resistance:

   • Multiple candle wicks at same level = resistance/support
   • Long wicks show price rejection
   • Breakouts through levels are significant
   • Use horizontal lines to mark key levels

4. Watch for Patterns:

   • Learn common candlestick patterns
   • Context matters (trend, volume, support/resistance)
   • Patterns more reliable on higher time frames
   • Confirm patterns with other indicators

5. Color Coding Strategy:

   • Traditional: Green/White up, Red/Black down
   • Some prefer: Blue up, Red down
   • Ensure sufficient contrast
   • Consider colorblind-friendly options

6. Data Quality Matters:

   • Ensure data is complete (no missing OHLC values)
   • Verify chronological order
   • Check for data errors (High < Low, etc.)
   • Use reliable data sources

Example Scenarios

Daily Stock Price

Shows daily OHLC data with clear trend.

Intraday Trading (5-minute)

High-frequency data for day trading analysis.

Cryptocurrency Price Movement

24/7 market with high volatility.

Bullish Trend with Support

Multiple bounces off support level.

Troubleshooting

Issue: Candles all appear the same color

• Solution: Check that Open and Close columns are different. If they're the same, all candles will be doji (no body).

Issue: Weird spikes or impossible prices

• Solution: Verify High is highest and Low is lowest for each period. Check data quality and remove outliers or errors.

Issue: Missing candles or gaps

• Solution: Enable "Hide Empty Values" to show gaps explicitly, or fill missing periods in your data with appropriate values.

Issue: Cannot see small price movements

• Solution: Zoom in on Y-axis or filter to specific date range. Consider using a line chart for subtle movements.

Issue: Overlapping candles

• Solution: Too many candles for the display width. Reduce date range, increase time period (daily instead of hourly), or increase plot width.

Issue: Colors are reversed (green showing down)

• Solution: Check that Close and Open columns are correctly assigned. Green should be Close > Open, red should be Close < Open.

Issue: Wicks don't match expected high/low

• Solution: Verify High column contains maximum and Low column contains minimum for each period. Check data source.