What is a Candlestick in Indices Trading?

A Indices Trading candlestick is a stock indices price representation which is used to represent the high, low, opening stock indices price and closing stock indices prices for a specific period of time. Indices trading candlesticks resembles a candle with wicks on both ends thus their name - candlesticks.

This type of stock indices price representation is commonly used by indices traders because it is easier to trade with and interpret when analyzing stock indices price movement on the stock indices charts.

This candlesticks pattern can be selected for trading on the MT4 platform and traders can then use this candlesticks indices charts when trading indices.

Candlesticks Indices Charts - these candlesticks indices charts use the same stock indices price data as bar indices charts (open, high, low, and close). The indices candlesticks resembles a candle with wicks on both ends.

How to Interpret Candlesticks Indices Charts

The rectangle part is called the body.

The high and low are described as shadows and drawn as poking lines.

How to Read Indices Charts Beginners PDF

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 Platform, use colors to mark the direction of the indices price. Candlesticks colors used are blue or green; when stock indices price moves up, color of candlestick is blue; when stock indices price moves down, color of candlestick is red.

Drawing Candlesticks Indices Charts on MT4

To draw these on the MT4 Indices Trading Platform, select the charts drawing tools within the "MT4 Toolbar" - shown below.

Drawing Candlesticks Indices Charts on MT4

To view this toolbar on MT4 go to "View" Next to file at the top left corner of the MT4 Platform, Click "View", Then Click "Toolbars", Then check the "Charts" Button. The above MetaTrader 4 toolbar will appear.

Once the above charts toolbar, appears you can then select the type of stock indices chart you want to convert to, If you want to trade using the bar indices charts format, click the bar stock indices chart tool button as shown above, for line stock indices chart trading click the line indices charts tool button, for Japanese candlesticks indices charts click the "candlesticks indices charts tool button".