Rank: Member
Groups: Registered, Registered Users
Joined: 10/1/2006(UTC)
Posts: 10
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Hello.
I've noticed in my candlstick charts that there are candlesticks which are empty and green (up) and candlesticks which are red and filled (down) which is how i understand candlesticks.
However there are candlesticks which are green and filled and candlesticks which are red and empty.
why is that so and how can i make MS display candlesticks which are either green&empty or red&filled?
Thanks
Rafael
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Rank:: Advanced Member
Groups: Registered, Registered Users
Joined: 12/8/2004(UTC)
Posts: 38
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Hello Orfeo -
I think everything is fine. You are essentially mixing western style analysis techniques with that of eastern style (candle charts) which is OK to do. When you set the color choice for candlecharts in MetaStock, the resulting price data is color-coded based on the relationship of the closing price for the current period to that of the previous period. So, in your case if the market closed higher than the previous close then your candle would be colored green otherwise if the market closed down from the previous period then your candle would be red.
Now for the candle construction. The "real body" portion of a given candlestick is not based on the previous period data. The "real body" is based on the relationship of the opening price to that of the closing price over the same time period. So, for any given candle, if the closing price is higher then the opening price then the "real body" of the candle will be empty. Likewise, if the closing price is lower than the opening price then your candle will be filled (solid).
Hope that makes sense.
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