MT4 Candlesticks 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 select to use hourly charts, daily charts or even 1 minutes 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
- Candle-sticks 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 hence not very popular among traders. In fact this type of chart is rarely used by online traders.
Line Chart in Gold Trading - This chart type leaves out important information about xauusd price movement. Information such as opening, high and low point of the price that are not 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 analyze the bar charts with ease when trading the market thus making them not very popular among 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
Candlesticks Charts - This is the most widely used type of charts, they resemble candles, thus their name - candle-sticks charts.
Candlesticks charts shows 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.
Candles Charts
Shown Below is example of candlesticks charts. To learn more about candlesticks charts, read the lesson: Analysis of Japanese Candlesticks Patterns in Gold Trading.
How to Select These Chart Types in MT4 Trading Software
To draw any of the types of charts on the MT4 Platform a trader can use the buttons below found on this MT4 platform.
Drawing Charts in MT4
- To Choose a Bar Chart Click the Bar Button
- To Choose a Candles Chart Click the Candlestick Button Key
- To Choose a Line Charts - Click the Line Button
