How to Read Gold Chart for Beginner Traders
Gold charts are used to illustrate the gold price movement of a gold instrument. This gold price movement is plotted on a gold chart and traders can analyze the gold chart patterns on the gold chart so as to determine when to open a buy gold trade or a sell gold trade transaction.
Gold trading charts can be used by traders to gain a better understanding of the gold price movement based on analyzing past gold price data - this gold price data analysis is then used by gold technical analysis traders to predict the next likely future gold price direction.
How to Get Gold Charts
Gold charts are provided for on the gold trading softwares such as the MT4 & MT5 platforms.
To get gold charts on MT4 & MT5 platforms:
MetaTrader 4 - To display the gold chart on MT4 platform follow the step below:
- Go to the Market Watch on the Top Right of the MetaTrader 4 Gold Trading Platform
- Select The Gold that you want to trade
- Right Click on this Gold
- From the Pop Up Menu Select Open Gold Chart option to open the gold chart on MetaTrader 4
MetaTrader 5 - To display the gold chart on MT5 platform follow the step below:
- Go to the Market Watch on the Top Right of the MT5 Gold Trading Platform
- Select The Gold that you want to trade
- Right Click on this Gold
- From the Pop Up Menu Select Open Gold Chart option to open the gold chart on MetaTrader 5
How to Analyze Gold Charts
Gold charts price movements can be interpreted using gold trend analysis & gold patterns technical analysis.
Gold trend analysis will determine if the gold prices are moving in an upward gold trend or a downwards gold trend.
Gold chart patterns will try to identify commonly repeating gold chart patterns so as to try and determine what is the next likely gold price direction based on the technical analysis of these commonly repeating price patterns.
The three most commonly used gold charts are:
Line Charts - gold line chart is a line connecting one closing gold price & the next. Line chart does not give much information about gold price movement compared to other gold chart types.
Bar Charts - gold bar charts show open, high, low and close of gold price - OHCL. Gold bar charts provide gold traders with a little more information than gold line charts.
Within the bar the opening price, the high price, the low price & closing price are represented.
The vertical line of a bar chart shows the gold price range for a particular gold price period the top of this vertical bar shows the high of the gold price while the bottom of this vertical bar shows the low of the gold price, two horizontal lines one to the left shows opening gold price and one on the right shows the closing gold price.
Candle Charts - gold candlestick charts show the opening gold price, the high gold price, the low gold price & closing gold price.
The opening & closing price are used to detect when a gold candle is bullish or bearish.
Bullish gold candle is when the gold close price is higher than the gold open price.
Bearish gold candle is when gold close price is lower than the gold open price.
How to Read Gold Chart for Beginner Traders - How to Interpret Gold Charts
