Candlestick Charts 

Shown below is a comparison of a candlestick chart to a bar chart. Once you see the two chart styles side by side the difference becomes pretty obvious. You will notice on the candlestick chart how much easier it is to spot a trend reversal. Bam it hits you like a freight train compared to the bar chart which requires much more evaluation.

 

In this example we see the exact same intraday chart of Cisco systems displayed first as a candlestick chart and secondly as a bar chart. Look at the downtrend on the candlestick chart and how easy it is to spot the exact candle that the stock reversed on. With the bar chart on the other hand you have to strain to figure out whether the stock actually closed higher or lower.  

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In the next example we will take a look at a single candle and see how it's formed.