Volume candles, also known as volume bars, are graphical representations that combine price and trading volume in a single chart. Unlike traditional candlestick charts that only display price information, volume candles incorporate the amount of an asset that was traded during a specific time period. The width or thickness of the candle often represents the trading volume, while the height and color indicate the price movement, similar to regular candlesticks.
Volume candles provide traders with more information about market activity and sentiment. High-volume candles can signal strong interest or conviction in a price move, while low-volume candles may indicate a lack of interest or indecision. Traders often use volume candles in conjunction with other technical indicators to make more informed trading decisions.
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