MetaTrader 4 Candles Charts
A chart is a graphical illustration of price movement of a instrument over a given time period.
Drawn on a grid and the user is at liberty to choose which xauusd gold chart timeframe they want to trade with. The trader might choose & select to use hourly trading charts, daily charts or even 1 minute chart timeframes.
To draw charts, 3 strategies are used. The methods used to draw the trading 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
MetaTrader 4 Line Charts
A single line is drawn from 1 closing price to the next, forming a continuous line.
This type of chart provides very little information on chart & is therefore not to be very popular among traders. In fact this type of trading chart is rarely used by traders.
Line Chart in Gold Trading - This chart type leaves out important information about xauusd price movement. Info 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 gold 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 aren't magnified. It becomes very hard and difficult to interpret the bar charts with ease when trading the market thus making them not to be very popular among the traders.
A Bar chart that isn't magnified makes it hard to view the opening & closing price as depicted by this exemplification:
MetaTrader 4 Candles Charts
Candles Charts - This is the most widely used type of trading chart, they resemble candlesticks, thus their name - candlesticks charts.
Candlesticks charts illustrates opening, closing, high and low of a particular gold price interval.
The range between the open xauusd gold price and the close xauusd price is called the body of the candle.
Candlesticks charts is the most popular type of charts among online traders because it is the easiest to interpret when trading the market. Candle 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 exemplification of candlesticks charts. To learn more about candlesticks charts, read the lesson: Analysis of Japanese Candlesticks Patterns on XAUUSD Trading.
How to Select and Choose These Chart Types in MT4 Trading Software
To draw any of the types of trading charts on the MT4 Software/Platform a trader can use the buttons below found on this MT4 platform.
Drawing Charts on MT4 Platform Software
- To Choose a Bar Chart Press the Bar Button
- To Choose a Candles Chart Click the Candlestick Button
- To Select & Choose a Line Charts - Click the Line Button
Get More Lessons and Topics:
- How to Trade Upwards Trend line Reversal XAUUSD Signals Combined with Double Tops Reversal Patterns Setups
- What's 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 Candles
