Here's the final post in our Financials Charts Explained series, all of which will be available in Wijmo FinancialChart (due for release July 16). So far we've covered:
At last: CandleVolume and Arms CandleVolume
Chart #7: CandleVolume
CandleVolume, predictably, are a combination of candlestick and volume charts—put simply, they add the dimension of volume (represented by width) to a candlestick. So in addition to HLOC, the viewer also gets the volume of shares traded in a day. Color of the candle indicates whether the close is above or below the open. In the example below, we can see that many shares were traded in the month of October, with several days where the close was higher than the open (indicated by the white candles). Like other charts in this blog series, October 10 shows a significant drop in stock price, and thus a higher volume of shares traded—but a week later, we see a jump up in price, and a day of even heavier trading., with 20,000,000 more shares than traded October 10. Read more at stockcharts.com.
Chart #8: Arms CandleVolume
Arms CandleVolume is essentially a combination of a candlestick and EquiVolume chart: it's a price chart that focuses on volume, price range, and candlestick. Width, of course, indicates volume. While a classic candlestick uses a wick-like line above and below the candle to indicate open-close, the Arms CandleVolume squares that off and creates "price high" and "price low"—a squared-off, volume-indicating replacement for a traditional candle's wick. In the Facebook example below, we see, again, that October 10 was a day when: close was lower than previous day's close (solid); trading was high; (wide); but it wasn't as high as the trading a week later, on October 17. Read more at stockcharts.com. FinancialChart will be available with the ship of 2015 v2, due out the week of July 15. If you're already an account member, you'll see the announcement soon. If not, create an account today to keep apprised of our 2015 releases! Send me announcements! >> See more v2 news >> See more FinancialChart news >>