Chart Types: Candles Charts - Line Charts
In trading, there are different kinds of charts that traders can use. The platform has these charts available, and traders can pick the chart type that works best for them. People can trade using line charts, forex bar charts, or candlestick charts.
A chart serves as a visual representation, illustrating the fluctuations in price for a particular currency pair over a defined timeframe.
Charts appear on a grid in MT4. Traders pick their preferred time frame, like hourly, daily, or 1-minute charts.
To draw charts, 3 methods are used. The techniques used to draw the trading charts defines the type of chart.
The 3 types of charts are: - Candlesticks Charts - Bar Charts - Line Charts
- Line charts
- Bar charts
- Candlesticks charts - Most popular
Line Chart - MetaTrader 4 Line Charts
A single line is drawn from one closing price to the next, shaping a continuous line.
Line charts offer scant details, so traders and investors rarely pick them.
Line charts in forex trading exclude essential details about price movements. For example, they do not display data like opening prices, highs, or lows.
Consequently, technical analysts in trading often perceive this particular kind of line chart as imprecise.
The chart below displays example of a line chart.
Bar Chart - MT4 Bar Charts
Forex Bar Charts: These charts depict the opening price, the closing price, the highest traded price, and the lowest traded price over a specified time segment, represented visually by the vertical line structures shown below, hence the name "bar charts."
- Bar Charts - bar chart has got a vertical bar representation showing total price movement.
- Left horizontal bar the opening
- Right horizontal bar the closing
- High and low denoted by highest and lowest point
Bar charts are tough to read without zoom. They get hard to follow in the market. That's why investors rarely use them.
A Bar chart that is not zoomed in makes it difficult to view the opening & closing price just as displayed by this exemplification:
Candle Chart - MT4 Candles Charts
Candle charts are the go-to type: they look like candles, so that's the name.
Candles charts shows opening, closing, high & low of a particular price interval.
The Section Between Where a Candlestick Opens and Closes is Designated as the Body of That Candlestick.
Candlesticks charts is the most popular/liked type of charts among traders because it's easiest to interpret and analyze when trading the market. Candlestick charts also generates a lot of info about the price movement. This makes candles charts the most widely used type of charting in FX.
Candles Charts
Below, you'll find an example of a candlestick chart. If you want to learn more, check out the lesson on Japanese candlestick patterns in FX trading.
How to Select and Choose These Chart Types in MT4 Software
To draw any of these types of charts on the MT4 Software/Platform a trader can use the buttons below found on this MT4 software.
Drawing Charts on the MT4
- To Select a Bar Chart Click the Bar Button
- To Choose and Select a Candlesticks Chart Click the Candlestick Button Key
- To Select & Choose a Line Charts - Click Line Button
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