How to Read Forex Trading MT4 Charts Explained Beginner Traders Guide

There are Three types of charts used in Forex: Line, bar & candles - how to read forex charts beginner traders Guide.

How to Read MetaTrader 4 Chart Patterns

Line Charts - forex line charts plots a continuous line connecting closing prices of a currency pair.

Forex Line MT4 Chart - How to Read Forex MT4 Charts Explained Beginner Traders Guide

MT4 Chart Bar Charts - forex bar charts are displayed as sequence of OHCL bars. O H C L represents OPEN HIGH LOW and CLOSE. Opening price is displayed as a horizontal dash on the left & closing price as a horizontal dash on the right.

Forex Bar MT4 Chart Charts - How to Read Forex MT4 Charts Explained Beginner Traders Guide

Main disadvantage of a bar chart MT4 Chart is that it is not visually appealing, therefore most traders don't use them.

Candlesticks Chart MT4 Chart - these candles chart MT4 Chart use the same price data as bar charts (open, high, low, and close). However, they are displayed in a much more visually identifiable way which looks like a candlestick with wicks on both its ends.

How to Interpret Candles Forex MT4 Charts Described

The rectangle section is called the body.

The high and low are described as shadows & plotted as poking lines.

Candlesticks Charts - How to Read Forex MT4 Charts Explained Guide

The color of the candlestick is either blue or red:

• (Blue or Green Color Candles) - Forex Prices moved up
• (Red Color Candlesticks) - Forex Prices moved down

Most Forex trading platforms like the MT4 Software, use colors to mark the direction of the price. MetaTrader 4 Chart Candles colors used are blue or green: when price moves upwards, color of MetaTrader 4 Chart candle is blue: when price moves downward, color of MT4 Chart candle is red.

Candlesticks Charts Vs. Bar Charts - How to Read Forex Charts Explained

When Forex MT4 candlesticks charts are used it's very easy to see if the price moved up or down as opposed to when MetaTrader 4 bar charts are used.

The Japanese candlesticks charts trading techniques also have very many patterns and formations which are used to trade the Forex Markets. These forex chart patterns have different technical analysis explanation & the most common are:

How to Read Forex Trading MT4 Charts Explained Beginner Traders Guide

The above MT4 Chart patterns is what makes the Japanese forex trading Forex MT4 Charts Explained candles patterns popular among forex traders & it is why this type of technical MT4 Chart analysis are the most widely used when it comes to interpreting the forex market.