Trading Gold interpret XAUUSD Charts
Interpreting Gold Charts
There are 3 types of charts used in XAUUSD: Line Charts, Bar Charts & Candles Charts.
Line Charts - draws continuous line connecting closing gold prices of a xauusd.
XAUUSD Line Charts - What are the 3 Types of XAUUSD Charts?
Bar Charts- displayed as sequence of OHCL bars. O-H-C-L represents OPEN HIGH LOW & CLOSE. The Opening gold price is displayed as a horizontal dash on the left and closing gold price as a horizontal dash on right.
XAUUSD Bar Charts - What are the 3 Types of XAUUSD Charts?
Candlestick Charts - these use the same price data as bar charts (open, high, low, & close). However, they are displayed in a much more visually identifiable way which looks like a candle with wicks on both its ends.
How to Interpret
The rectangle part is called the body.
The high and low are described as shadows and drawn as poking lines.
XAUUSD Candlesticks Charts - What are the 3 Types of XAUUSD Charts?
The color of the candlestick is either blue or red
- (Blue or Green Color) - XAUUSD Prices moved up
- (Red Color) - XAUUSD Prices moved down
Most gold trading softwares like the MetaTrader 4, use colors to mark the direction. Colors used are blue or green: when the price moves upward, red: when price moves downward.
