Line chart is the easiest type of the charts at all, which is the type of charts that used by Charles Dow, and it represents only the closing price which considered the most important price , because it is the end result of the conflict between the buyers and sellers or the end of the war between them , and a declaration who won the war, so the line chart is constructed by connecting this closing prices along the time frames, whether it stocks or currencies or commodities.
This chart is made up to reflect the full price movement (open , high , low , close ) during the period of trading for each data point by a vertical line where the highest point of the bar represent the high and lowest point of the bar represent the low, the left tick represent the open and the right tick represent the closing price .
When the right tick ( close ) is higher than the left tick ( open ) this represent an up bar and vice versa , when the right tick ( close ) is below the left tick this represent a down bar, whether this bar is week , day ,hour or minute .
The candlestick chart is also like the bar chart in which they reflect the full price movement (open, high, low, close), but it differs from Bar chart in the way of constructing this 4 prices with its unique visual representation.
In candlesticks chart we have widen the vertical bar in the bar chart into a rectangle part which represent the difference between the open and close and making this rectangle part colored whether white or black (green or red ) or any other combination of colors to show what happened during the period of trading for each data point on any time frame.
When the closing price is above the opening price for the period of trade, the color of candlestick will be white (green) and when the closing price is below the opening price for the period of trading then the color candlestick will be a black (red), according to the color used .