Drawing Candlesticks Stock Index Charts in MetaTrader 4
The fourth option on the MetaTrader 4 charts menu is the candlesticks button - used to select the chart to trade with as candlesticks.
To trade with these candlesticks, the above buttons shows where a stock indices trader should select the button do choose this option.
These are drawn using also color coding:
Red - Indices Price went down
Blue - Indices Price went up
This chart type is also preferred by many traders because they are more appealing for technical analysis and easier to trade with. A lot of information can be analyzed from these charts.
These will show the Opening, High, Low, Closing stock index price of a particular time period. This is abbreviated OHCL.
The body of the candlesticks will show stock indices instrument movement that was within the opening and closing stock index price of a particular trading period - it is also used to determine a lot of information. For example in the above chart the long blue body meant there were a lot of buyers and therefore the stock index price movement was likely to continue in the upwards bullish stock indices trend direction.
The upper and lower shadow, the wicks of the candlestick will show the highest point and the lowest point that the stock index price reached.
Japanese Candlesticks Tutorials
The Japanese patterns tutorials can be used to learn how to determine stock indices trend reversal stock indices signals or stock indices trend continuation signals from the different patterns and formations.
To learn more about the various stock index trading strategies for trading these patterns, a stock indices trader can read these tutorials: