How to Read Stock Indices Chart for Beginner Traders
Stock Indices charts are used to illustrate the stock indices price movement of a stock indices instrument. This stock indices price movement is plotted on a stock indices chart and stock indices traders can analyze the stock indices chart patterns on the stock indices chart so as to determine when to open a buy stock indices trade or a sell stock indices trade.
Stock Indices trading charts can be used by stock indices traders to gain a better understanding of the stock indices price movement based on analyzing past stock indices price data - this stock indices price data analysis is then used by stock indices technical analysis traders to predict the next likely future stock indices price direction.
How to Get Stock Indices Charts
Stock Indices charts are provided for on the stock indices trading platforms such as the MT4 and MT5 platforms.
To get stock indices charts on MT4 and MT5 platforms:
MT4 - To display the stock indices chart in MetaTrader 4 platform follow the step below:
- Go to the Market Watch on the Top Right of the MT4 Stock Indices Trading Platform
- Select The Stock Indices Instrument that you want to trade
- Right Click on this Stock Indices Instrument
- From the Pop Up Menu Select Open Stock Indices Chart option to open the stock indices chart on MT4
MT5 - To display the stock indices chart in MetaTrader 5 platform follow the step below:
- Go to the Market Watch on the Top Right of the MT5 Stock Indices Trading Platform
- Select The Stock Indices Instrument that you want to trade
- Right Click on this Stock Indices Instrument
- From the Pop Up Menu Select Open Stock Indices Chart option to open the stock indices chart on MT5
How to Interpret Stock Indices Charts
Stock Indices charts price movements can be interpreted using stock indices trend analysis & stock indices patterns technical analysis.
Stock Indices trend analysis will determine if the stock indices prices are moving in an upward stock indices trend or a downwards stock indices trend.
Stock Indices chart patterns will try to identify commonly repeating stock indices chart patterns so as to try and determine what is the next likely stock indices price direction based on the technical analysis of these commonly repeating stock indices price patterns.
The three most commonly used stock indices charts are:
Line Charts - stock indices line chart is a line connecting one closing stock indices price & the next. Line chart does not give much information about stock indices price movement compared to other stock indices chart types.
Bar Charts - stock indices bar charts show open, high, low and close of stock indices price - OHCL. Stock Indices bar charts provide stock indices traders with a little more information than stock indices line charts.
Within the bar the opening price, the high price, the low price & closing price are represented.
The vertical line of a bar chart shows the stock indices price range for a particular stock indices price period the top of this vertical bar shows the high of the stock indices price while the bottom of this vertical bar shows the low of the stock indices price, two horizontal lines one to the left shows opening stock indices price and one on the right shows the closing stock indices price.
Candle Stick Stock Indices Trading Charts - stock indices candlestick charts show the opening stock indices price, the high stock indices price, the low stock indices price & the closing stock indices price.
The opening and closing price are used to detect when a stock indices candle is bullish or bearish.
Bullish stock indices candle is when the stock indices close price is higher than the stock indices open price.
Bearish stock indices candle is when stock indices close price is lower than the stock indices open price.
How to Read Stock Indices Chart for Beginner Traders - How to Interpret Stock Indices Charts
