What is Candlestick in CFD?
A CFD candlestick is a cfd price representation of a cfd instrument which is used to represent the high, low, opening cfd price and closing cfd prices of a cfd instrument for a specific period of time. CFD candlesticks resembles a candle with wicks on both ends thus their name - candlesticks.
This type of cfd price representation is commonly used by traders because it is easier to trade with and interpret when analyzing cfds market price movement on the cfds charts.
This candlesticks pattern can be selected for trading in MetaTrader 4 platform & traders can then use this candlesticks charts when trading cfd.
Candle Sticks Charts - these candlesticks charts use the same price data as bar charts (open, high, low, and close). The cfd candlesticks resembles a candle with wicks on both ends.
How to Analyze Candlesticks 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 CFDs Charts Beginners PDF
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.
Drawing Candlesticks Charts on MT4 Software
To draw these on the MetaTrader 4 CFD Platform, choose the charts plotting tools within the "MT4 Tool-bar" - shown below.
Drawing Candlesticks Charts on MT4 Platform
To view this toolbar in MetaTrader 4 platform go to "View" Next to file at the top left corner of the MT4 Platform, Click "View", Then Click "Tool bars", Then check the "Charts" Button. The above MT4 toolbar will appear.
Once the above charts toolbar, pops up you can then choose the type of cfd chart you want to convert to, If you want to trade using the bar charts format, click the bar chart tool button as shown above, for line chart trading click the line charts tool button key, for Japanese candles charts click the "candlesticks charts tool button key".
