What is a Candle in Commodity Trading?

A Commodity Trading candlestick is a commodity price representation which is used to represent the high, low, opening commodity price & closing commodity prices for a specific period of time. Commodity candles resembles a candlestick with wicks on both ends thus their name - candles.

This type of commodity price representation is commonly used by traders because it is easier to trade with and interpret when analyzing commodity price movement on the commodity charts.

This candles pattern can be selected for trading on MT4 platform & traders can then use this candlesticks charts when trading commodity.

Candle Sticks Charts - these commodity candles charts use the same price data as bar charts (open, high, low, and close). The commodity candlesticks resembles a candle with wicks on both ends.

How to Interpret Candles Charts

The rectangle section is known as body.

The high & low are described as shadows & drawn as poking lines.

How to Read Commodity Charts Beginner Traders PDF

The color of the commodity trading candle 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 Platform, 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.

Drawing Commodity Trading Candlesticks Charts on MT4

To draw these on the MT4 Commodities Trading Software, select the charts drawing tools within the "MT4 Toolbar" - shown below.

Drawing Commodity Trading Candlesticks Charts on MT4

To view this toolbar on MT4 platform go to 'View' Next to file at the top left corner of the MT4 Platform, Click 'View', Then Click 'Tool bars', Then check 'Charts' Button. Above MT4 toolbar will appear.

Once the above charts tool-bar, pops up you can then select the type of commodity 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, for Japanese candlesticks charts click the "candlesticks charts tools button".