Indices Trading Chart Types: Line, Candlestick and Bar - MT4 Candlesticks Charts - MT4 Bar Charts - MT4 Line Charts
A Indices chart is a graphical representation of price movement of a indices instrument over a given period of time.
Drawn on a grid and the user is at liberty to choose which indices chart time frame they want to trade with. The trader may choose to use hourly indices trading charts, daily indices charts or even 1 minute indices chart time frames.
To draw indices trading charts, three methods are used. The methods used to draw the indices charts defines the type of indices trading chart.
The three types of indices charts of are; - Candlesticks Charts - Bar Charts - Line Charts
- Line charts
- Bar charts
- Candlesticks indices trading charts- Most popular
Line Chart - MT4 Line Charts
A single line is drawn from one closing price to the next, forming a continuous line.
This type of indices chart provides very little information on the chart and is therefore not very popular among traders. In fact this type of indices chart is rarely used.
Line Chart - This type of indices chart leaves out important information about indices price movement. Information such as opening, high and low point of the price which are not represented on the graph.
This makes this type of indices trading line chart to be considered sketchy by indices trading technical analysts.
The chart below shows an example of a indices trading line chart.
Bar Chart - MT4 Bar Charts
Indices Bar Charts - This type of indices chart shows the opening, closing, the high and the low, for a particular indices price interval and is represented by bars that look like the ones drawn below - hence its name bar charts
- Bar Charts - bar chart has a vertical bar showing the total indices price movement.
- Left horizontal bar the opening
- Right horizontal bar the closing
- High and low denoted by the highest and lowest point
However, these indices trading bar charts are not very easy to work with, especially when they are not magnified. It becomes very hard to interpret the bar charts with ease when trading the Indices trading market thus making them not very popular among traders.
A Bar chart that is not magnified makes it hard to view the opening and closing price as illustrated by this example:
Candlestick Chart - MT4 Candlesticks Charts
Indices Candlesticks Charts - This is the most widely used type of indices trading charts, they resemble candles, thus their name - candlesticks charts.
Candlesticks charts shows the opening, closing, the high and the low of a particular indices price interval.
The range between the open indices price and the close indices price is called the body of the candlestick.
Indices candlesticks charts is the most popular type of indices charts among online traders because it is the easiest to interpret when trading the indices market. Indices candlestick charts also gives a lot of information about the price movement. This makes indices candlesticks charts the most widely used type of charting in Indices.
Indices Candlesticks Charts
Below is an example of candlesticks indices trading charts. To learn more about indices candlesticks charts, read this topic: Technical Analysis of Japanese Candlesticks Patterns in Indices Trading.
How To Select These Indices Chart Types on MT4 Platform
To draw any of these types of indices charts on the MetaTrader 4 Platform a trader can use the buttons below found on this MetaTrader 4 platform.
Drawing Indices Charts on MT4 Platform
- To Select a Bar Chart Click the Bar Button
- To Select a Candlesticks Chart Click the Candlestick Button
- To Select a Line Charts - Click the Line Button