MT4 Candles Charts
A chart is a graphical illustration of price movement of a instrument over a given period of time.
Drawn on a grid and the user is at liberty to choose which xauusd chart time-frame they want to trade with. The trader might choose to use hourly charts, daily charts or even 1 minute chart time-frames.
To draw charts, three strategies are used. The techniques used to draw the charts defines the type of chart.
The three types of charts are: - Candles Charts - Bar Charts - Line Charts
- Line charts
- Bar charts
- Candles charts - Most popular
MT4 Line Charts
A single line is drawn from one closing price to the next, forming a continuous line.
This type of chart provides very little information on chart & is therefore not very popular among traders. In fact this type of chart is rarely used by traders.
Line Chart in Gold Trading - This chart type leaves out important information about xauusd price movement. Information such as opening, high & low point of the price that aren't represented on the graph.
This makes this type of line chart to be considered sketchy by xauusd technical analysts.
The chart below portrays an example of a line chart.
MT4 Bar Charts
Bar Charts - This type of chart shows the opening, closing, the high and the low, for a particular xauusd price interval & is represented by bars that look like the ones drawn below - therefore its name bar charts
- Bar Charts - bar chart has a vertical bar showing the total xauusd price movement.
- Left horizontal bar the opening
- Right horizontal bar the closing
- High & low denoted by the highest & lowest point
However, these bar charts aren't very easy to work with, especially when they are not magnified. It becomes very hard to interpret the bar charts with ease when trading the market thus making them not very popular among the traders.
A Bar chart that is not magnified makes it hard to view the opening & closing price as depicted by this example:
MT4 Candles Charts
Candles Charts - This is the most widely used type of charts, they resemble candles, thus their name - candle-sticks charts.
Candlesticks charts illustrates opening, closing, high and low of a particular xauusd price interval.
The range between the open xauusd price and the close xauusd price is called the body of the candlestick.
Candlesticks charts is the most popular type of charts among online traders because it is the easiest to interpret when trading the market. Candlestick charts also gives a lot of information about the price movement. This makes candles charts the most widely used type of charting in Gold.
Candlesticks Charts
Shown Below is example of candlesticks charts. To learn more about candlesticks charts, read the lesson: Analysis of Japanese Candles Patterns in XAUUSD Trading.
How to Select These Chart Types in MT4 Trading Software
To draw any of the types of charts on the MetaTrader 4 Platform Software a trader can use the buttons below found on this MetaTrader 4 software platform.
Drawing Charts on MT4
- To Choose a Bar Chart Press the Bar Button
- To Choose a Candles Chart Click the Candlestick Button
- To Select a Line Charts - Click the Line Button
Get More Tutorials and Topics:
- How to Trade Upwards Gold Trend-line Reversal XAU USD Signals Combined with Double Tops Reversal Patterns Setups
- What is DD XAU/USD Account Meaning?
- How Do You Trade Gold Instruments in MT5 Trading Software?
- Gold Indicators Used To Trade XAU/USD Charts
- Hanging Man Bearish Gold Candlesticks
