MT4 Candlesticks Chart Indices Trading
A Indices Trading chart is a graphical representation of stock indices price movement of a indices trading instrument over a given period of time.
Drawn on a grid & the user is at liberty to select which indices chart timeframe they want to trade with. The trader might select to use hourly stock indices charts, daily charts or even 1 minutes chart time frames.
To draw stock indices charts, 3 techniques are used. The techniques used to draw the indices charts defines the type of stock indices chart.
The three types of indices charts are: - Candlesticks Chart Indices Trading - Bar Chart Indices Trading
- Line charts
- Bar charts
- Candles indices charts - Most popular
Line Chart
A single line is drawn from one closing stock indices price to the next, forming a continuous line.
This type of stock indices chart provides very little data on the chart & is therefore not very popular among stock indices traders. In fact this type of stock indices chart is rarely ever used.
Line Chart in Indices Trading - This type of stock indices chart leaves out important information about stock indices price movement. Information such as opening, high & low point of the stock indices price which are not represented on the trade graph.
This makes this type of indices line stock indices chart to be considered sketchy by stock indices trading technical analysts.
The stock indices chart below shows example of a indices line stock indices chart.
Bar Stock Indices Chart
Indices Trading Bar Chart Indices Trading - This type of stock indices chart shows the opening, closing, the high and the low, for a particular stock indices price interval and is represented by bars that look like the ones drawn below - hence its name bar charts
- Bar Chart Indices Trading - bar stock indices chart has a vertical bar showing the total stock indices price movement.
- Left horizontal bar the opening
- Right horizontal bar the closing
- High and low denoted by the highest & lowest point
However, these indices trading bar stock indices 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 stock indices market thus making them not very popular among stock indices traders.
A Bar chart that is not magnified makes it hard to view the opening and closing stock indices price as illustrated by this example:
Candle Stock Indices Chart
Indices Candlesticks Chart Indices Trading - This is the most widely used type of stock indices charts, they resemble candles, thus their name - candlesticks stock indices charts.
Candlesticks charts shows the opening, closing, high and the low of a particular stock indices price interval.
The range between the open stock indices price & the close stock indices price is called the body of the candle.
Indices Trading candles charts is the most popular type of indices charts among online traders because it is easiest to interpret when trading the stock indices trading market. Indices Trading candle charts also gives a lot of information about the stock indices price movement. This makes candles charts the most widely used type of charting in Indices.
Candles Chart Indices
Shown Below is example of candles stock indices charts. To learn and know more about candlesticks stock indices charts, read this topic: Technical Analysis of Japanese Candles Patterns in Indices Trading.
How to Select These Indices Chart Types on MetaTrader 4 Platform
To draw any of these types of indices charts on the MT4 Platform a trader can use the buttons below found on this MetaTrader 4 software.
Drawing Chart Indices Trading on MT4
- To Choose a Bar Chart Click the Bar Button
- To Choose a Candles Chart Click the Candlestick Button
- To Select a Line Chart Indices Trading - Click the Line Button
