How to Read a Candlestick Chart
A beginners guide to cfd - how to read cfd charts. The 3 types of cfd charts are line chart, bar chart & candle chart - these oftenly used cfd chart types are covered in this tutorials and beginners can learn how to interpret these charts from this tutorial.
This learn cfd tutorial will show you how to read these candlesticks charts that are commonly used in the CFD market.
How to Read Candle Charts for Beginners
Line Charts - cfd line charts draws a continuous line connecting closing cfd prices of a cfd.
CFD Line Charts - How to Read Candlestick Charts for Beginners
Bars Charts - cfd bar charts are displayed as sequence of OHCL bars. O H C L represents OPEN HIGH LOW and CLOSE. Opening cfd price is displayed as a horizontal dash on the left and closing cfd price as a horizontal dash on the right.
CFD Bars Charts- How to Read Candlestick Charts for Beginners
The main disadvantage of a bar charts is that it is not visually appealing, therefore most traders don't use them.
Candle Sticks Charts - these candlesticks charts use the same price data as bar charts (open, high, low, and close). However, they are displayed in a much more visually identifiable way which looks like a candle with wicks on both its ends.
How to Analyze Candlesticks CFDs Charts
The rectangle section is known as the body.
The high and low are described as shadows and drawn as poking lines.
How to Read Candle Charts for Beginner Traders
The color of the cfd candlestick is either blue or red:
- (Blue or Green Color Candles) - CFD Prices moved up
- (Red Color Candlesticks) - CFD Prices moved down
Most cfds trading platforms like the MetaTrader 4 CFD Platform, use colors to mark the direction of the cfd price. Candles colors used are blue or green: when the price moves upwards, color of candlestick is blue: when price moves down, color of candlestick is red.
How to Read Candlestick Charts for Beginners
When CFDs candlesticks charts are used it is very easy to see if the cfd price moved up or down as opposed to when bar charts are used.
