Candlestick chart, also known as Japanese candlestick charts are first of all used as reading technical analysis of charts. There are also another chart structure based on bars which has a different anatomy, but here we will tell you about candlestick charting. There are also other techniques to can tell price action on price changes that are older, but the most popular charts are bars and candlestick analysis.
Candlestick chart and bar charts are very similar to each other since they give prominent data points in technical analysis. During the trading hours they provide open price, close price, low price and high price. For instance when a candlestick pattern shows a full day trading it draws the price on start and end of a trading day and also the high and low price of that day. Keep in mind that currency trading day is for full 24 hours.

As visually explained on the picture, bars open with a left horizontal line, while they close with a right horizontal line. The bottom line shows the low and the top shows the high of that particular time period. On the other hand, candlesticks charts put more weight on the opening and close by making the gap between them more distinguished. This gap has a name and it’s called ‘the real body’. The vertical lines below and top of the body are called ‘wicks’ or ‘shadows’. There are two different colors on the bodies, one is white and the other is black. The white body means the it is a bullish candlestick, which means that the price of the currency opened at the bottom and closed at the top. On the other hand, if the body is black it means that the candlestick is bearish and the price opened at the top and closed at the bottom.
Japanese candlestick charting has only been popular since the start of the millennium in the Western society. Thanks to Steve Nison who made this old candlestick patterns from Japan famous. The difference between bars and candlesticks are the way they show price information points. The same data which has the high, low, open and close price will be displayed significantly different between these two. By going a bit further to explain the difference, bars shows all the support/support and bar chart patterns, Japanese candlestick charting takes it even further by providing a graphical explanation of the ‘fight’ between buyers and sellers (bulls and bears).Bar chart patterns have many well-known formations among currency traders, like triangles, head and shoulder, flags, double tops and many others. Candlestick indicators have all these included, but also other patterns like hanging man, morning star, hammer among others. All these patterns are explained here.