Forex Chart Types: Line, Candlestick and Bar - MT4 Candlestick, Bar Chart and Line Chart
A Forex chart is a graphical representation of price movement of a currency pair over a given period of time.
Drawn on a grid and the user is at liberty to select which forex chart time frame they want to trade with. The forex trader might select to use hourly charts, daily charts or even 1 minutes chart time-frames.
To draw forex charts, three techniques are used. Techniques used to draw the forex charts defines the type of forex chart.
The three types of forex MT4 charts are: - Candles - Bar Charts - Line Charts
- Line charts
- Bar charts
- Candlesticks forex charts - Most popular
MT4 Line Chart - MT4 Line Chart Indicator
A single line is plotted from one closing price to the next, forming a continuous line.
This type of chart provides very little information on chart and is therefore not very popular among forex traders. In fact this type of forex chart gets rarely used by traders.
MT4 Line Chart in Trading Forex - This type of chart leaves out important information about forex trading price movement. Information such as opening, high & low point of the forex price that aren't represented on the graph.
This makes this type of forex line chart to be considered sketchy by forex technical analysts.
The forex chart below shows an example of a forex line chart.
MT4 Bar Chart - MT4 Bar Chart Indicator
MT4 Bar Charts - This type of chart shows the opening, closing, the high and the low, for a particular forex trading price interval and is represented by bars that look like ones drawn below - hence its name bar charts
- MT4 Bar Charts - bar chart has a vertical bar showing the total forex trading price movement.
- Left horizontal bar the opening
- Right horizontal bar the closing
- High & low denoted by the highest & lowest point
However, these forex MT4 bar charts aren't very easy to work with, especially when they aren't magnified. It becomes very hard to analyze the bar charts with ease when trading the forex market thus making them not very popular among forex traders.
A MT4 Bar chart that is not magnified makes it hard to view the opening and closing forex price as illustrated by this example:
MT4 Candlestick Chart - MT4 Candlestick Indicator
MT4 Candles Charts - This is the most widely used type of forex MT4 charts, they resemble candles, thus their name - candlesticks MT4 charts.
MT4 Candlesticks charts shows the opening, closing, the high and the low of a particular forex trading price interval.
The range between the open price & the close price is called the body of the candle.
MT4 Forex candlesticks MT4 charts is the most popular type of forex charts among online traders because it is the easiest to interpret when trading the FX market. Forex candlestick charts also gives a lot of data about the forex trading price movement. This makes candlesticks MT4 charts the most widely used type of charting in FX.
Candle Sticks Charts
Below is an example of candlesticks charts. To learn more about candlesticks MT4 charts, read this topic:Technical Analysis of Japanese Candles Patterns in Forex Trading.
How to Select These Forex Trading Chart Types on MT4 Platform
To draw any of these types of forex charts on the MT4 Platform a trader can use the Chart Indicators below found on this MT4 platform.
Drawing Forex Charts in MT4 Software
- To Choose a Bar Chart Click the MT4 Bar Chart Indicator
- To Select a Candles Chart Click the MT4 Candlestick Chart Indicator
- To Select a Line Charts - Click the MT4 Line Chart Indicator
