How to Read the Three Types of Charts
To read gold price charts gold traders will need to first of all learn analysis.
This gold analysis study of gold price movement will analyze historical price moves using trends and gold patterns in an attempt to predict the next likely movement of the price direction.
A chart can be described as a graph representation of the price of a gold instrument over a specified gold time-frame period.
The gold charts use the y-axis or vertical axis to represent the price scale and the x-axis or horizontal axis to represent time scale. Prices are then drawn from left to right with the most recent price being plotted at the furthest point to the right of this gold chart.
The gold chart can have different chart timeframes
MetaTrader 4 Chart Time-Frames
M1 for 1 Min Charts
M5 for 5 Min Charts
M15 for 15 Min Charts
M30 for 30 Min Charts
H1 for 1H Charts
H4 for 4 Hours Charts
D for Daily Charts
W for Weekly Charts
M for Monthly Charts
MT5 Chart Time-Frames
M1 for 1 Min Charts
M2 for 2 Min Charts
M3 for 3 Min Charts
MetaTrader for 4 Minutes Charts
M5 for 5 Min Charts
M10 for 10 Min Charts
M12 for 12 Min Charts
M15 for 15 Min Charts
M20 for 20 Min Charts
M30 for 30 Min Charts
H1 for 1H Charts
H2 for 2 Hours Charts
H3 for 3 Hours Charts
H4 for 4 Hours Charts
H6 for 6 Hours Charts
H8 for 8 Hours Charts
H12 for 12 Hours Charts
D for Daily Charts
W for Weekly Charts
M for Monthly Charts
These gold chart timeframes are used to plot price data movement over the specified gold chart timeframe period and traders can then analyze gold price movements from these gold charts.
Using charts makes it easier for gold traders to analyze gold price movements because gold traders can analyze gold price trends as well as gold price patterns.
Price charts are used to analyze supply & demand for the price movement. And changes in the supply and demand will be depicted in the price movement.
Gold analysis study is then used to analyze these gold price movements on the charts. Analysis assumes that all the market information has been factored in the price action movement based on supply and demand for a particular gold instrument and this supply and demand is depicted in the price action movement that occurs on the charts price movement.
The Three Charts Types That are Used in Technical Analysis
The three gold chart types used for gold analysis are:
- Line Chart
- Bar Chart
- Candlestick Chart
Gold Line Chart
Gold line chart draws a continuous line from one closing price to the next closing price and this then depicts the movement of gold price of a particular gold instrument over a period of time on the chart.
Gold line charts do not provide gold traders with a lot of details and information about price movement and the only information plotted by this line chart is of where the price closed for a particular gold time-frame period.
The gold line chart can be used to analyze gold trends based on the direction of the line chart movement.
Gold Bar Chart
A bar chart is used to show the opening price, the high xauusd price, the low gold price & closing price.
The bar chart will depict the whole gold price range for each gold period - using the above gold price data points - opening price, the high gold price, the low gold price & closing price.
The vertical bar indicates the instrument range as a whole for the period
Tops of the bar indicates the high gold price
The bottom of the bar indicates the low gold price
A dash that is drawn to the left of the price bar indicates the opening price
A dash that is drawn to the right of the price bar indicates the closing price
Candle Chart
A candlestick chart is used to show the opening price, the high xauusd price, the low gold price & closing price.
A candle chart is represented in a easier to read & interpret format compared to the bar chart.
Candlestick gold charts represent the same data as that of a bar chart but in a much easier to interpret format.
Candles have 2 parts: the body of the candle and the shadow of the candle
Candlesticks have a body which is the difference between the opening price & closing price. The body of the candle will have different colors depending on the direction of the price.
Blue or Green Candles for when price moves up
Red Candles for when price moves down
The gold candlesticks also have protruding lines above and below the body of the candlestick - these protruding lines are known as shadows. The upper shadow represents the high gold price & the lower shadow represents the low gold price.
How to Read the Three Types of Charts
