Understanding Candlestick with Trend

The TradeStation platform provides two ways
in which to display candlesticks. One is called, ‘Candlestick with Trend’ and
the other is just plain ‘Candlestick’. The name candlestick is used because the data
in the charts is plotted to resemble what looks like a series of candles with wicks. The thick part of the candle stick represents
the range between the open and closing prices. In the traditional candle stick a hollow body
represents a bullish market in which the close is higher than the opening price. A filled body on the other hand, represents
a bearish market in which the close is lower than the opening price. The thin line above the body represents the
high, and the thin line below the body represents the low. When formatting the symbol on a chart the
style tab will allow you to select the type of candle stick to display. First let’s take a look at candle stick with
trend. Candlestick with trend displays two concepts
in one. The hollow or filled bodies represent the
relationship between the closing price and the opening the price within the candle. The color is used to indicate the trend direction. We see three different colors green, red,
and grey. By default green indicates an uptrend, where
the current bar close is greater than the previous close. Red indicates a down trend where the current
bar close is less than the previous close. Grey indicates no change in close from the
previous to the current bar. Let’s switch this chart to plain candlesticks. When candlestick is selected candles are always
filled. The color is use to show the hollow or filled
candle concept. By default, green indicates an up body or
hollow candle where the current bar close is greater than the current bar open. Red indicates a down body or filled candle
where the current bar close is less than the current bar open. Grey is used for the wick above and/or below
the body. If you would like to strip your candlestick
chart from all colors and use the fill and hollow concept. You can click on format symbol, go to the
style tab, select candlestick with trend and then click on the checkbox that says, ‘Using
Color Weight for All Components with an Each Bar Type’.

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