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