There are three main types of charts, line, bar and candle.
Line charts are the most basic and simply join one period closing price to another.
Line charts are the most basic and simply join one period closing price to another.
Bar charts give more detail then a regular line chart in that each period is represented by a bar. The bar not only shows price movements from one period to the next, they also show price movements within the period itself.
Candlestick charts. These are very similar to bar charts except there colored bodies are able to give the viewer greater detail in movements within the period at a glance. Each period is made up of a candlestick – the candlestick is made up of a body and a wick on both ends. The candle body is then colored (typically red and either blue or green). The wick represents the high and low of the period, while the body represents the open and close of the period, the color lets us know if the price rose or fell in that period. If the candle body is red then the top of the candle represents the opening price and the bottom the closing, a green or blue candle would represent the opposite, the top of the candle would be the closing while the bottom would be the opening.