Last updated on June 6th, 2021

If you have looked at the price of any stock or ETF, you may have seen that the charts have some bars at the bottom. What do these bars mean and represent? Here’s what you’ll need to know:

What are the red and green volume bars in a stock chart?

The red and green colours on the volume bars represent how the stock’s price has performed relative to the previous period. If the price is higher, the bar will be green. If the price is lower, the bar will be red. Here is a more in-depth explanation below:

The volume bar will be green if the current close price is greater than the previous bar

If the closing price of the current bar is higher than that of the previous bar, the volume bar will be green...