Types of Charts
How to Understand Different Types of Charts
There are different types of gold charts used in analysis and the 3 most common charts are line charts, bar charts & candlestick charts.
Gold Line charts & Gold Bar Charts are not as popular as Candles Charts
Candlesticks Charts are popularly used in the market because the candlestick shows the direction of gold price movement based on the color of the candlestick. The distance between the opening price and closing price is called the body of the candlestick, the top and bottom lines are known as shadows and these represent the high and low of the price.
The body of a gold candlestick is based on the opening price & closing price of a particular gold chart time-frame period.
If the Opening price is lower than the closing price the color of the candlestick body will be blue or green meaning prices went up. A bullish gold candle - price moved up - blue or green color gold candle.
If the Opening price is higher than the closing price the color of the candlestick body will be red meaning prices went down. A bearish gold candle - price moved down - red color gold candle.
The thin lines that protrude above and below the candle body are called wicks or shadows.
Gold Bar Charts
Gold bar charts are used to display information that is similar to gold candlesticks only that this charting technique uses bars to plot price movement instead of candlesticks. The bar has a line on the left & right side - the left side is the opening price & the right side is the closing price. Different colors are used for different bars to display the direction of the price movement - green bars for when price moves upwards & red bars for when price moves down.
Gold Line Charts
Gold line charts are used to draw the closing price as continuous line on the chart.
Line gold charts are the simplest charts that don’t give much details on the chart because just a line is drawn to connect one gold closing price to the next gold closing price and this line chart will show a series of the closing prices.
Traders use gold charts to determine the direction of the market and to identify buy and sell setups and signals.
The three commonly used gold charts - Line Charts, Bar Charts & Candlesticks Charts are provided for on the platform - MetaTrader 4 & MT5 platform and traders can choose the type of gold charts that they want to trade with.
How to Understand Different Types of Charts
Various types of gold charts can be used by traders to analyze, interpret and understand the supply and demand of a gold instrument.
The gold charts studies can help traders identify various gold setups that have different interpretations for supply & demand.
Traders can use these gold setups to identify gold signals of where to buy & sell and where to close open trades.
To read a gold chart a trader will need to learn about the three different chart types.
Traders will also need to know about the various gold chart timeframes for these gold charts - 1 minute chart timeframe, 5 minutes chart timeframe, 15 minutes chart timeframe, 30 minutes chart timeframe, 1 hour gold chart timeframe, 4 hours gold chart timeframe, 1 day gold chart timeframe, 1 Week and 1 month gold chart timeframe.
Types of Different Charts
