How to Read a Gold Candlestick Chart
A beginners guide to xauusd trading - how to read gold charts. The 3 types of xauusd charts are line chart, bar chart & candle chart - these oftenly used gold chart types are covered in this guides and beginners can learn how to interpret these charts from this tutorial.
This learn gold trading tutorial will show you how to read these gold candlesticks charts that are commonly used in the Gold Trading market.
How to Read Candlestick Charts for Beginners
Line Charts - gold line charts draws a continuous line connecting closing xauusd prices of gold.
Gold Trading Line Charts - How to Read Candle Charts for Beginner Traders
Bars Charts - gold bar charts are displayed as sequence of OHCL bars. O-H-C-L represents OPEN HIGH LOW and CLOSE. Opening xauusd price is displayed as a horizontal dash on the left & closing xauusd price as a horizontal dash on the right.
Gold Bars Charts- How to Read Candlestick Charts for Beginner Traders
The main disadvantage of a bar charts is that it is not visually appealing, therefore most traders don't use them.
Candle Sticks Charts - these gold candles charts use the same price data as bar charts (open, high, low, and close). However, they in a much more visually identifiable way which resembles a candle with wicks on both ends.
How to Interpret Candles Charts
The rectangle part is called the body.
The high and low are described as shadows & drawn as poking lines.
Gold Candles Charts - How to Read Candlestick Charts for Beginners
The color of the xauusd candlestick is either blue or red:
- (Blue or Green Color Candles) - Gold Prices moved up
- (Red Color Candlesticks) - Gold Prices moved down
Most gold trading platforms like the MT4 Gold Trading Platform, use colors to mark the direction of the xauusd price. Candles colors used are blue or green: when price moves upwards, color of candlestick is blue: when price moves downward, color of candlestick is red.
How to Read Candlestick Charts for Beginners
When Gold candlesticks charts are used it is very easy to see if the xauusd price moved up or down as opposed to when bar charts are used.
