How to Read a XAUUSD Candlestick Chart
A beginners guide to xauusd - how to read xauusd charts. The 3 types of xauusd charts are line chart, bar chart & candlestick chart - these oftenly used xauusd chart types are covered in this tutorials & beginners can learn how to interpret these charts from this tutorial.
This learn xauusd tutorial will show you how to read these xauusd candlesticks charts that are commonly used in the XAUUSD market.
How to Read Candle Charts for Beginner Traders
Line Charts - xauusd line charts draws a continuous line connecting closing gold prices of a xauusd.
XAUUSD Line Charts - How to Read Candlestick Charts for Beginner Traders
Bars Charts - xauusd bar charts are displayed as sequence of OHCL bars. O-H-C-L represents OPEN HIGH LOW and CLOSE. Opening gold price is displayed as a horizontal dash on the left and closing gold price as a horizontal dash on right.
XAUUSD Bars Charts- How to Read Candlestick Charts for Beginner Traders
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 xauusd candlesticks 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 looks like a candle with wicks on both its ends.
How to Analyze Candlesticks Charts
The rectangle part is called the body.
The high and low are described as shadows and drawn as poking lines.
XAUUSD Candlesticks Charts - How to Read Candlestick Charts for Beginner Traders
The color of the gold candlestick is either blue or red:
- (Blue or Green Color Candlesticks) - XAUUSD Prices moved up
- (Red Color Candles) - XAUUSD Prices moved down
Most xauusd trading platforms like the MetaTrader 4 XAUUSD Platform, use colors to mark the direction of the gold price. Candlesticks colors used are blue or green: when the price moves upwards, color of candle is blue: when price moves down, color of candlestick is red.
How to Read Candlestick Charts for Beginners
When Gold candles charts are used it is very easy to see if the gold price moved up or down as opposed to when bar charts are used.
