MT4 Candles Chart Trading

A Indices Trading chart is a graphical representation of price movement of a instrument over a given period of time.

Drawn on a grid & the user is at liberty to select which chart timeframe 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, 3 techniques are used. The techniques used to draw the charts defines the type of chart.

The three types of charts are: - Candles Chart Trading - Bar Chart Trading

1. Line charts
2. Bar charts
3. Candles charts - Most popular

Line Chart

A single line is plotted from one closing price to the next, forming a continuous line.

This type of chart provides very little data on the chart & is therefore not very popular among stock traders. In fact this type of chart is rarely ever used.

Line Chart in Indices Trading - This type of chart leaves out important information about price movement. Information such as opening, high & low point of the price which are not represented on the trade graph.

This makes this type of line chart to be considered sketchy by stock trade technical analysts.

The chart below portrays example of a line chart.

Bar Stock Chart

Indices Bar Chart Trading - This type of chart shows the opening, closing, the high & the low, for a specific price interval & is represented by bars that look like the ones plotted below - hence its name bar charts

• Bar Chart Trading - bar chart has a vertical bar showing the total price movement.
• Left horizontal bar the opening
• Right horizontal bar the closing
• High and low denoted by the highest & lowest point

However, these bar charts are not very easy to work with, especially when they aren't magnified. It becomes very hard to interpret the bar charts with ease when trading the market thus making them not very popular among stock traders.

A Bar chart that is not magnified makes it hard to view the opening and closing price as shown by this example:

Candle Stock Chart

Candlesticks Chart Trading - This is the most widely used type of charts, they resemble candle-sticks, thus their name - candlesticks charts.

Candles charts displays the opening, closing, high and the low of a particular price interval.

The range between the open price & the close price is called the body of the candle.

Indices Trading candles charts is the most popular type of charts among online traders because it's easiest to interpret when trading the market. Indices Trading candle charts also gives a lot of information about the price movement. This makes candles charts the most widely used type of charting in Indices.

Candles Chart Indices

Shown Below is example of candles charts. To learn and know more about candlesticks charts, read this topic: Technical Analysis of Japanese Candle Sticks Patterns in Indices.

How to Select These Chart Types on MetaTrader 4 Software

To draw any of the types of charts on the MT4 Software a trader can use the buttons below found on this MetaTrader 4 software.

Drawing Chart Trading on MetaTrader 4

• To Choose a Bar Chart Click the Bar Button

• To Choose a Candles Chart Click the Candlestick Button

• To Select a Line Chart Trading - Click the Line Button