How to Read MetaTrader 4 Charts Described Beginner Traders Tutorial

There are 3 types of charts used in Indices: Line, bar & candles - how to read charts beginners guide.

How to Read MetaTrader 4 Trading Setups

Line Charts - indices line charts draws a continuous line connecting closing prices of indices.

Indices Line MT4 Chart - How to Read MT4 Charts Described Beginners Guide

MT4 Chart Bar Charts -indices trading bar charts are displayed as sequence of OHCL bars. O-H-C-L represents OPEN HIGH LOW and CLOSE. Opening price is displayed as a horizontal dash on left & closing price as a horizontal dash on right.

Indices Bar MetaTrader 4 Chart Charts- How to Read MT4 Charts Described Beginners Guide

Main disadvantage of a bar chart MT4 Chart is that it's not visually appealing, therefore most traders do not use them.

Candles Chart MT4 Chart - these candlesticks chart MT4 Chart use the same price data as bar charts (open, high, low, & close). However, they are displayed in a much more visually identifiable way which looks like a candlestick with wicks on both its ends.

How to Analyze Candlesticks MT4 Charts Described

The rectangle section is known as body.

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

How to Read MT4 Charts Described Beginners Guide

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

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

Most trading softwares like the MT4 Trading Software, use colors to mark the direction of the price. MetaTrader 4 Chart Candles colors used are blue or green: when stock price moves up, color of MT4 Chart candle is blue: when stock price moves downwards, color of MT4 Chart candlestick is red.

Candles Charts Vs. Bar Stock Charts

When Indices MetaTrader 4 candles charts are used it's very easy to see if the price moved up or down as opposed to when MetaTrader 4 bar charts are used.

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

How to Read MetaTrader 4 Charts Described Beginners Guide

The above MetaTrader 4 Chart patterns is what makes the Japanese MT4 Charts Described candlesticks chart patterns popular among traders & it's why this type of technical MT4 Chart analysis are the most widely used when it comes to interpreting the market.