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Trading Faq General

Why do the colour on bar charts and volume bars not match sometimes?

This Is because of the following reasons:

  • Chart settings: Some charting platforms allow you to customize the colours of the bars, so the colours might not be consistent between platforms.
  • Price direction: The colour of the bars can also indicate whether the price is moving up or down, so if the price is moving erratically, the colours might not match up consistently.

The followings are criteria of colour selection:

  • Prices on candles:

    • It is calculated using a stock's opening and closing prices over a predetermined time frame.
    • The candle will be green if the open price exceeds the closure price.
    • The candle will be red if the start price is higher than the close price.
  • Volume bars:

    • The candle will be green if its closing price is higher than the price of the preceding candle.
    • The candle will be red if its closing price is higher than that of the preceding candle.

As a consequence, you will see a green candlestick and a red volume bar if the closing price in a given time frame is higher than the opening price but lower than the closing price of the previous candle.