How to Read Gold Charts Beginner Traders Tutorial

Chart Analysis

There are 3 types of charts used in Gold: Line Chart, Bar Chart and Candlesticks Chart - how to read gold charts beginners Tutorial.

How to Read Chart Analysis

Line Charts - gold line charts plot a continuous line connecting closing prices of gold.

Gold Line Charts - How to Read Gold Charts Beginner Traders Tutorial

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

Gold Bar Charts- How to Read Gold Charts Beginner Traders Tutorial

The main disadvantage of bar chart is that it's not visually appealing, therefore most traders don't use them.

Candles Charts - these candle-sticks charts use the same price data as gold bar charts (open, high, low, and close). However, they in a much more visually identifiable way which resembles a candlestick with wicks on both ends.

How to Analyze Candle Sticks Charts

Rectangle part of the candle-stick is known as the body.

The high & low of the candlestick are described as shadows & plotted as poking lines.

Gold Candlesticks Charts

The color of the candle-stick is either blue or red:

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

Most trading softwares like the MT4 XAUUSD Software, use colors to mark the direction of the price. Gold Candlesticks colors used are blue or green: when price moves upward, color of candle is blue: when price moves downward, color of candle-stick is red.

How to Read Gold Charts Beginner Traders PDF

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

The Japanese candles charts techniques also have very many candles formations which are used to trade the Trading Markets. These chart patterns have different analysis interpretation & the most common are:

How to Read Chart Patterns Beginners PDF

The above candlesticks patterns is what makes the Japanese candlesticks chart patterns popular among traders and it's why this type of technical chart analysis are the most widely used when it comes to analyzing the market. Analysis for these charts pattern formations in trade is the same as that one used in stocks trading.