Trade Forex Trading

How to Read Chart for Beginner Traders

Gold charts visually demonstrate the price movements of instruments. Traders can analyze these patterns to identify ideal moments to open buy or sell positions.

Traders study gold charts to grasp price trends from past data. This analysis helps forecast future directions.

How to Get Charts

Gold charts are provided on the softwares such as the MT4 & MT5 platforms.

To get charts in MT4 and MT5 softwares:

MT4 - To display the chart on MetaTrader 4 software follow the step:

  1. Go to the Market-Watch on the Top Right of the MetaTrader 4 Software Platform
  2. Choose The XAUUSD that you as a trader want to trade
  3. Right-Click in this Gold
  4. From the Pop Up Menu Choose Open Chart option to open the chart in MetaTrader 4 Platform Software

MT5 - To display the chart in MT5 software follow the step:

  1. Go to the Market-Watch on the Top Right of the MetaTrader 5 Platform
  2. Select The XAUUSD that you as a trader want to trade
  3. Right-Click in this Gold
  4. From the Pop Up Menu Choose Open Chart option to open the chart on the MetaTrader 5 Platform

How to Interpret/Analyze Charts

Price fluctuations in gold charts can be deciphered through the examination of trend behavior and established gold patterns.

Gold trend analysis serves to definitively establish whether prices are trending upwards or downwards.

Gold chart patterns spot common repeats in price action. They help predict the next move based on analysis of these patterns.

The 3 most oftenly used charts are:

Gold line charts join closing prices with lines. They show less about moves than bar or candle charts.

Bar Charts - gold bar charts show the price when trading opened, the highest price, the lowest price, and the closing price - OHCL. Bar charts give traders more info than line charts.

The bar represents the opening price, high price, low price, and closing price.

The line that goes up and down on a bar chart shows the price range for a certain time. The top of the line is the highest price, and the bottom is the lowest. Two lines going sideways, one on the left, shows the price at the start, and the other on the right shows the price at the end.

Candlestick Charts - These charts visually present the opening price, the highest price reached, the lowest price touched, and the closing price.

The opening & closing price are used to detect when a candle is bullish or bearish.

Bullish candle is when the closing price is higher than the open price.

Bearish candle is when gold close price is lower than the open price.

How to Read Chart for Beginner Traders - How to Interpret/Analyze Charts

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