How to Read a Commodity Candle Chart
A beginners guide to commodities trading - how to read commodity charts. The 3 types of commodities charts are line chart, bar chart & candle stick chart - these commonly used commodity chart types are covered in this guides & beginners can learn how to interpret these charts from this tutorial.
This learn commodity trading tutorial will show you how to read these commodity candlesticks charts that are commonly used in the Commodity Trading market.
How to Read Candlestick Charts for Beginners
Line Charts - commodity line charts draws a continuous line connecting closing commodity prices of commodity.
Commodity Trading Line Charts - How to Read Candle Charts for Beginners
Bars Charts - commodity bar charts are displayed as sequence of OHCL bars. O-H-C-L represents OPEN HIGH LOW & CLOSE. Opening commodity price is displayed as a horizontal dash on the left & closing commodity price as a horizontal dash on right.
Commodity Bars Charts- How to Read Candle 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 commodity candles charts use the same price data as bar charts (open, high, low, & close). However, they are displayed in a much more visually identifiable way which resembles a candlestick with wicks on both its ends.
How to Interpret Candles Commodities Trading Charts
The rectangle section is known as body.
The high & low are described as shadows & drawn as poking lines.
How to Read Candle Charts for Beginner Traders
The color of the commodity trading candlestick is either blue or red:
- (Blue or Green Color Candles) - Commodity Trading Prices moved up
- (Red Color Candles) - Commodity Trading Prices moved down
Most commodity trading platforms like the MT4 Commodity Trading Software, use colors to mark the direction of the commodity price. Candles colors used are blue or green: when price moves up, color of candle is blue: when the price moves downward, color of candlestick is red.
How to Read Candle Charts for Beginners
When Commodity Trading candle sticks charts are used it is very easy to see if the commodity price moved up or down as opposed to when bar charts are used.
