How to Read a XAUUSD Candlestick Chart
A beginners guide to xauusd - how to read charts. The 3 types of charts are line chart, bar chart & candle chart - these oftenly used 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 candle-sticks charts that are commonly used in the market.
How to Read Candle Charts for Beginner Traders
Line Charts - line charts draws a continuous line joining closing prices of a xauusd.
XAUUSD Line Charts - How to Read Candlestick Charts for Beginner Traders
Bars Charts - xauusd bar charts are portrayed as sequence of OHCL bars. O-H-C-L represents OPEN HIGH LOW and CLOSE. Opening price is highlighted as a horizontal dash to the left and closing 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 isn't visually appealing, therefore most traders do not use them.
Candles 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 that looks like a candlestick with wicks on both its ends.
How to Analyze Candles Charts
The rectangle section is calledknown--asreferred--to--as the body.
The high and low are described as shadows & plotted as poking lines.
Candlesticks Charts - How to Read Candlestick Charts for Beginner Traders
The color of candlestick is either blue or red:
- (Blue or Green Color Candlesticks) - Prices moved upward
- (Red Color Candlesticks) - Prices went down
Most platforms like the MT4 Platform Software, use colours to mark direction of price. Candles colors used are blue or green: when the price moves upwards, color of candle is blue: when the price moves down, color of candle is red.
How to Read Candle Charts for Beginners
When candlesticks charts are used it is very easy to see if the price headed up or down as opposed to when bar charts are used.
