Although the fact that the same data is being used when charting candlestick charts and bar charts, japanese candlestick charting dramatically increases the visual analysis abilities.
Candlestick patterns allow the technical trader to gather trend and human behavior information more easily then with bar charts. Once you have become familiar with candlestick charts, the visual aspects of these charts will make all other charting techniques seem insignificant.
Bar Chart
Today, the default option in charting software is to view the forex, stock or futures price movement through bar charts.
Each bar displays the open, close, high and low as price change, regardless of the time period you use, i.e. 5 min, 1 hour, daily, weekly, etc.
Bar Price Movement Formation
Forming the Bar
One bar, a vertical line, represents the specify periodicity price movement. The top of the line is the high of the trading range and the bottom is the low.
A bulge to the left side of the line represents the opening price while a bulge to the right side represents the closing price.
