MT4 Candlesticks Charts
A chart is a graphical representation of trading price movement of a indices instrument over a given period of time.
Drawn on a grid & the user is at liberty to choose which time frame they want to trade with. Trader might select to use hourly charts, daily charts or even 1 minutes chart time-frames.
To draw charts, 3 techniques are used. Techniques used to draw the charts defines the type of chart.
The three types of charts are: - Candlesticks Charts - Bar Charts
- Line charts
- Bar charts
- 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 and is hence not very popular among stocks traders. In fact this type of chart gets rarely used by traders.
Line Chart in Indices - This type of chart leaves out important information about price movement. Info such as opening, high & low point of the price that are not represented on the graph.
This makes this type of indices line chart to be regarded as sketchy by stock trade technical analysts.
The chart below portrays example of a indices line chart.
Bar Chart
Bar Charts - This type of chart shows the opening, closing, the high & the low, for a specific price interval and is represented by bars that look like ones drawn below - hence its name bar charts
- Bar Charts - bar chart has a vertical bar showing the total trading price movement.
- Left horizontal bar the opening
- Right horizontal bar the closing
- High and low denoted by highest and lowest point
However, these indices trading bar charts are not very easy to work with, especially when they aren't magnified. It becomes very hard to interpret the bar chart with ease when trading the trading market thus making them not very popular among stock traders.
A Bar chart that is not magnified makes it hard to view the opening & closing price as shown by this example:
Candle Chart
Candlesticks Trade Charts - 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 in between the open price & the close price is known as body of the candlestick.
candlesticks charts is the most popular type of charts among online traders because it's easiest to interpret when trading the trading market. candle-stick charts also gives a lot of data about the price movement. This makes candles charts the most widely used type of charting in Indices.
Candles Charts
Shown Below is example of candlesticks charts. To learn and know more about candlesticks charts, read the topic: Technical Analysis of Japanese Candlesticks Patterns in Indices Trading.
How to Select These Chart Types on MT4 Platform
To draw any of the types of charts on the MT4 Software a trader can use the buttons below found on this MT4 platform.
Drawing Charts in MT4
- To Choose a Bar Chart Click the Bar Button
- To Choose a Candles Chart Click the Candlestick Button Key
- To Select a Line Charts - Click the Line Button
