Understanding Bars and Candlesticks

Bar and candlestick charts are the two most popular types of graphical charts that are used by day traders. Both bar and candlestick charts provide a variety of information about the past and current market prices, and they are both relatively easy to read and understand. Bar and candlestick charts are very flexible, and are used by short and long term traders alike, and are the recommended chart types for many different trading systems.

Bar and candlestick charts are composed of individual bars and candlesticks that combine to form the complete chart. Understanding how to read a single bar or candlestick is essential to understanding how the individual bars and candlesticks interact with each other to provide a complete picture of the underlying market.

Descriptions of bars and candlesticks, with explanations of each piece of trading information that they provide, are available in the reading a bar, and reading a candlestick articles.