How to Read the Three Types of Gold Charts
To read gold price charts gold traders will need to first of all learn gold technical analysis.
This gold technical analysis study of gold price movement will analyze historical gold price moves using gold trends and gold chart patterns in an attempt to predict the next likely movement of the gold price direction.
A gold chart can be described as a graph representation of the gold price of a gold instrument over a specified gold chart time-frame period.
The gold charts use the y-axis or vertical axis to represent the gold price scale and the x-axis or horizontal axis to represent time scale. Gold prices are then drawn from left to right with the most recent gold price being plotted at the furthest point to the right of this gold chart.
The gold chart can have different chart timeframes
MT4 XAUUSD Chart Time-frames
M1 for 1 Minute Gold Charts
M5 for 5 Minutes Gold Charts
M15 for 15 Min Gold Charts
M30 for 30 Min Gold Charts
H1 for 1H Gold Charts
H4 for 4 Hours Gold Charts
D for Daily Gold Charts
W for Weekly Gold Charts
M for Monthly Gold Charts
MT5 Gold Chart Timeframes
M1 for 1 Minute Gold Charts
M2 for 2 Minutes Gold Charts
M3 for 3 Min Gold Charts
M4 for 4 Minutes Gold Charts
M5 for 5 Minutes Gold Charts
M10 for 10 Min Gold Charts
M12 for 12 Min Gold Charts
M15 for 15 Min Gold Charts
M20 for 20 Min Gold Charts
M30 for 30 Min Gold Charts
H1 for 1 H Gold Charts
H2 for 2 Hours Gold Charts
H3 for 3 Hours Gold Charts
H4 for 4 Hours Gold Charts
H6 for 6 Hours Gold Charts
H8 for 8 Hours Gold Charts
H12 for 12 Hours Gold Charts
D for Daily Gold Charts
W for Weekly Gold Charts
M for Monthly Gold Charts
These gold chart timeframes are used to plot gold price data movement over the specified gold chart timeframe period and traders can then analyze gold price movements from these gold charts.
Using gold 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.
Gold price charts are used to analyze supply and demand for the gold price movement. And changes in the supply and demand will be depicted in the gold price movement.
Gold technical analysis study is then used to analyze these gold price movements on the gold charts. Gold technical analysis assumes that all the market information has been factored in the gold price action movement based on supply and demand for a particular gold instrument and this supply and demand is depicted in the gold price action movement that occurs on the gold charts price movement.
The Three Gold Charts Types That are Used in Gold Technical Analysis
The three gold chart types used for gold technical analysis are:
- Line Chart
- Bar Chart
- Candlestick Chart
Gold Line Chart
Gold line chart draws a continuous line from one closing gold price to the next closing gold price and this then depicts the movement of gold price of a particular gold instrument over a period of time on the gold chart.
Gold line charts do not provide gold traders with a lot of details and information about gold price movement and the only information plotted by this line chart is of where the price closed for a particular gold chart time-frame period.
The gold line chart can be used to analyze gold trends based on the direction of the gold line chart movement.
Gold Bar Chart
A bar chart is used to show the opening gold price, the high gold price, the low gold price & closing gold price.
The bar chart will depict the whole gold price range for each gold trading period - using the above gold price data points - opening gold price, the high gold price, the low gold price & closing gold price.
The vertical bar indicates the gold instrument trading 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 gold price bar indicates the opening gold price
A dash that is drawn to the right of the gold price bar indicates the closing gold price
Gold Candle Chart
A candlestick chart is used to show the opening gold price, the high gold price, the low gold price & closing gold price.
A gold candle chart is represented in a easier to read and interpret format compared to the gold bar chart.
Candlestick gold charts represent the same data as that of a bar chart but in a much easier to interpret format.
Gold Candles have 2 parts: the body of the candle and the shadow of the candle
Gold candlesticks have a body which is the difference between the opening gold price & closing gold price. The body of the gold candlestick will have different colors depending on the direction of the gold price.
Blue or Green Candlesticks for when price moves up
Red Candlesticks for when price moves down
The gold candlesticks also have protruding lines above and below the body of the gold 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 Gold Charts
