Trade Stock Indices

MT4 Candlesticks Charts

A chart shows a picture of how the trading price of an indices tool moves over a certain amount of time.

Drawn on a grid and the user is at liberty to choose which timeframe they want to trade with. Trader may select to use hourly trading charts, daily charts or even 1 Minute time-frames.

To draw charts, 3 techniques are used. Techniques/Methods used to draw the trading charts defines the type of chart.

The three types of charts are: - Candles Charts - Bar Charts

  1. Line charts
  2. Bar charts
  3. Candles charts - Most popular

Line Chart

A single line connecting consecutive closing prices is plotted, creating a seamless representation.

This kind of chart doesn't show much data and isn't very popular with stock traders. This type of chart is actually rarely used by traders at all.

Line Chart in Indices - This kind of chart doesn't show some important details about how the price changes. It doesn't show the starting, highest, or lowest price points.

This graphical characteristic leads technical analysts in stock trading circles to often categorize this line chart format as somewhat imprecise.

The chart below portrays example of a indices line chart.

Indices Line Chart - MT4 Line Charts

Bar Chart

Bar Charts - This type of chart shows the opening, closing, the high and the low, for a specific price interval and is represented by bars that look like ones drawn below - therefore its name bar charts

  • Bar Charts - bar chart has got a vertical bar showing the total price movement.
  • Left horizontal bar the opening
  • Right horizontal bar the closing
  • High and low denoted by highest & lowest point

But, these bar charts for trading indices are not easy to use, mostly when they are small. When trading, it's hard to understand the bar chart if it's not bigger, so stock traders don't usually like them.

MT4 Bar Charts - Candles Charts, Line Charts and Bar Charts Chart Types

Indices Bar Chart

A bar chart that isn't zoomed in can make it hard to see the opening and closing prices, like in the following example:

Bar Charts in Indices - Candle Charts, Line Charts and Bar Charts Chart Types

Candle Chart

Candlestick charts are the most popular for trading. They look like candles, which is how they got the name.

Candles charts displays the opening, closing, high and the low of a particular price interval.

The distance between the opening price and the closing price is referred to as the body of the candle.

Traders favor candlestick charts most. They read easy during market trades. These charts pack info on price shifts. That's why they're top for indices.

Candles Charts, Line Charts and Bar Charts Chart Types

Candles Charts

Displayed Below is example of candlesticks charts. To learn and know more about candles charts, read the topic: Technical Analysis of Japanese Candlesticks Patterns on Indices Trade.

Trading Indices Japanese Candles Charts

How to Select These Chart Types in MT4 Software Platform

To draw any of the types of trading charts on the MT4 Software Platform a trader can use the buttons below found on this MT4 software platform.

Bar Chart

Drawing Charts on the MT4 Platform Software

  • To Choose a Bar Chart Click the Bar Button
  • To Choose a Candles Chart Click the Candlestick Button Key
  • To Select and Choose a Line Charts - Click Line Button

Get More Tutorials & Topics:

Stock Index Broker