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Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

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Definition

A candlestick chart where the width of the candles is determined by the volume traded during the day. Obviously this leads to an irregular X-axis which can create some problems with the application of trendlines and other indicators. However, candle volume charts highlight heavily and thinly traded days - which can give a good indication of the significance of price movements. For example, a 10c move in a share's price with 1000 shares traded has a completely different significance from the same 10c move with a million shares traded.

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