The Six Different Types of Gold Charts
What are the Different Gold Chart Types?
There are several different types of gold charts used in gold technical analysis & these gold charts are explained below.
A trader can use this gold chart types tutorial to find out which gold chart types are best for them to use when analysis the gold market gold price movement:
Line Charts
Line gold charts are basic gold charts that only draw a continuous line connecting closing gold price from one gold chart timeframe period to the next.
Gold line chart provides gold price data as a continuous line that connects a series of gold closing prices.
The gold line chart will not draw other gold price information such as the high of the gold price, the low of the gold price & closing of the gold price.
Gold traders can also use gold line charts to identify & trade gold technical analysis patterns such as double top and double bottom.
Gold traders can also use gold line to identify gold trends & to draw gold trend lines on these gold line charts.
Bar Charts
Gold bar charts will show the gold price action data of a particular gold chart time-frame period.
The gold bar chart will show high price, low price, open gold price and close gold price.
The bar chart will be represented by a vertical line that represents the bar and then there will be a small dash to the left of this vertical bar showing the opening gold price and another small dash to the right of this vertical bar showing the closing gold price.
A gold bar will continue and start plotting from where the previous gold price bar left.
Gold traders can also use gold bar charts to identify & trade gold technical analysis patterns.
Gold traders can also use gold bar charts to identify gold trends & to draw gold trend lines on these gold bar charts.
Gold Candles Charts
Gold candlesticks charts are used to represent all the data of the gold price action movement which includes: high price, low price, open price and close price.
A gold candlestick has two parts the body of the gold candlesticks and the shadows of the gold candlestick.
The body of the gold candlestick shows the gold price action between opening gold price & closing gold price. The body of the candlesticks will have different colors depending on the direction of the gold price movement, blue or green candlesticks when price moves upwards & red gold candlesticks when price moves down.
The length of the body of the candlesticks will determine how much gold price movement there was between the opening gold price & closing gold price for a particular gold chart time-frame period.
The lower and upper thin lines protruding out of the candlestick body are known as shadows and the bottom and top of these shadows represent the low and high gold price of a particular gold price period.
A lot of information can be analyzed by gold trades from the body and the shadows of a gold trading candlestick.
Gold candlesticks patterns is a gold technical analysis study that explains how to read gold candlesticks and how to interpret gold signals from these gold candlesticks patterns.
These gold candles patterns include:
- Doji Gold Candlestick
- Marubozu Gold Candlestick
- Hammer Gold Candlestick
- Inverted hammer Gold Candlestick
- Shooting Star Gold Candlestick
- Piercing Line Gold Candlestick
- Dark Cloud Cover Gold Candlestick
- Morning Star Gold Candlestick
- Evening Star Gold Candlestick
- Bullish Engulfing Gold Candlesticks
- Bearish Engulfing Gold Candlesticks
Heikin Ashi Charts
Heikin-Ashi is Japanese and means average bar.
Heikin Ashi charts are used because it is easier to identify gold trends using Heikin Ashi Charts
Heikin-Ashi charts look like gold candles but are calculated using a different technique.
These Heikin Ashi candlestick gold price point are calculated as follows:
Opening Price - Opening price is calculated as a average of the opening & closing price of the prior candlestick
High Price - the high price of Heikin Ashi candle is chosen from one of the following data points of the previous candlestick - high, opening price & closing price - depending on which has the highest value
Low Price - the low price of Heikin Ashi candle is chosen from one of the following data points of the previous candlestick - low, opening price & closing price - depending on which has the lowest value
Closing Price - Closing price is calculated as the average of the opening price, high price, low price & closing price of the prior candle
Heikin Ashi gold charts generate gold signals that are slower as when compared to gold candles charts and this is because of the technique of calculation used to plot the Heikin Ashi gold charts.
The slower gold signals generated by Heikin Ashi gold charts can be used to trade more volatile gold prices because this Heikin Ashi gold charts delays in reacting to gold prices will help prevent gold traders from trading gold whipsaw signals.
Heikin Ashi gold charts have less gold whip saw signals because of the delay in calculation of the gold prices.
Renko Gold Trading Charts
Renko gold charts adds a square block on the gold chart when the price moves by a certain specified distance.
Renko charts are also used to filter out the time when the gold market is consolidating
When gold price moves by this distance the Renko charts adds another square block.
The square block will be added in the direction of the gold price move.
Renko gold charts are used to identify the gold trends & trade these gold trends.
Point & Figure XAUUSD Trading Charts
The point & figure charts are used to filter out the time when the gold market is consolidating
Point & Figure charts are drawn with X & 0 columns that are vertical.
Point & figure charts are used to compress time using the point and figure gold chart representations because point & figure adds a new X or 0 vertically rather than next to the previous point & figure & only when the point and figure calculates the gold trend to have changed then a new vertical bar is then added to the right side of the point and figure charts.
Point & Figure gold charts are used to identify the gold trends & trade these gold trends.
The Six Different Types of Gold Charts Used in Gold Trading
