What do the colors mean on a stock volume chart?
Volume Bars are the familiar red and green bars. A green bar indicates that the closing price is higher than the close of the previous bar while a red bar indicates that the closing price is lower than the previous close.
What are green and red bars in volume chart?
The colors in the Volume chart also have meaning. A green volume bar means that the stock closed higher on that day verses the previous day’s close. A red volume bar means that the stock closed lower on that day compared to the previous day’s close.
What determines the color of a volume bar?
The color of a volume bar is determined by its corresponding price bar; blue if the most recent trade is equal to or greater than the previous period’s last trade, and magenta if it is less than the previous period’s closing price.
What do GREY candlesticks mean?
The close of the current candlestick is higher than the close of the previous candlestick. Grey (Neutral) The close of the current candlestick is the same as the close of the previous candlestick. Red (Down) The close of the current candlestick is lower than the close of the previous candlestick.
What is the best volume indicator?
The best volume indicator used to read a volume in the Forex market is the Chaikin Money Flow indicator (CMF). The Chaikin Money Flow indicator was developed by trading guru Marc Chaikin, who was coached by the most successful institutional investors in the world.
Do you buy red or green stocks?
Green means the momentum is positive (prices in the recent past have gone up), whilst Red means the momentum is negative (prices in the recent past have gone down). You should only buy stocks when they are trending upwards, which is indicated with a Green light.
What Does stock volume tell you?
Volume measures the number of shares traded in a stock or contracts traded in futures or options. Volume can be an indicator of market strength, as rising markets on increasing volume are typically viewed as strong and healthy. When prices fall on increasing volume, the trend is gathering strength to the downside.
What does a black candle mean in stock charts?
The first chart shows normal candlesticks. A red candlestick means the close was lower than the prior close. A black candlestick indicates that the close was higher than the prior close. A solid candlestick is black when the close is above the open. A solid candlestick is red when the close is below the open.
What is empty candle?
An unfilled candle, shown on the left, is created when the opening price is lower than the security’s closing price. Each bar can represent a minute, day, week, or even month, but the chosen time frame does not influence the color of the candle.
What is a good volume for a stock?
Thin, Low-Priced Stocks = Higher Investment Risk To reduce such risk, it’s best to stick with stocks that have a minimum dollar volume of $20 million to $25 million. In fact, the more, the better. Institutions tend to get more involved in a stock with daily dollar volume in the hundreds of millions or more.