Why do the colour on bar charts and volume bars not match sometimes?
The colour of volume bars can be different from a candle chart due to differences in the colour selection criteria.
The colour selection criteria are as follows.
For price candles
It is based on the opening and closing price of a stock in a given time frame.
- The candle will be green if open price < close price.
- The candle will be red if open price > close price.
For volume bars
- The candle will be green if the candle's closing price > previous candle's closing price
- The candle will be red if the candle's closing price < previous candle's closing price.
Learn more about various chart types in this chapter on Varsity.