You will notice different colours between price candles and volume bars because each uses different criteria to determine colour.
How chart colours work
Price candles: Price candles base their colour on the stock's opening and closing price within a specific time frame:
- The candle appears green when the opening price is less than the closing price
- The candle appears red when the opening price is greater than the closing price
Volume bars: Volume bars base their colour on the relationship between consecutive candles:
- The volume bar appears green when the current candle's closing price is greater than the previous candle's closing price
- The volume bar appears red when the current candle's closing price is less than the previous candle's closing price
You will notice mismatched colours when the closing price exceeds the opening price (creating a green candlestick), but the current candle's closing price falls below the previous candle's closing price (creating a red volume bar). You can learn more about charts by visiting The Chart Types module on Varsity.