MT4 Bar Charts
A Stock Indices chart is a graphical representation of stock price movement of a instrument over a given period of time.
Drawn on a grid & the user is at liberty to select which chart time-frame they want to trade with. The trader might choose to use hourly charts, daily charts or even 1 minutes chart time-frames.
To draw charts, 3 techniques are used. The techniques used to draw the charts defines the type of stock chart.
The 3 types of charts are: - Bar Charts
- Line charts
- Bar charts
- Candlesticks charts - Most popular
MetaTrader 4 Line Charts
A single line is drawn from one closing price to the next, forming a continuous line.
This type of chart provides very little information on the chart & is therefore not very popular among stock traders. In fact this type of stock chart is rarely used by traders.
Line Chart in Stock Index - This type of chart leaves out important information about price movement. Information such as opening, high & low point of the price that are not represented on the graph.
This makes this type of line chart to be considered sketchy by technical analysts.
The chart below highlights an example of a line chart.
MT4 Bar Charts
Stock Index Bar Charts - This type of chart shows the opening, closing, the high and the low, for a particular price interval and is represented by bars that look like the ones drawn below - hence its name bar charts
- Bar Charts - bar chart has a vertical bar showing the total price movement.
- Left horizontal bar the opening
- Right horizontal bar the closing
- High and low denoted by the highest & lowest point
However, these bar charts are not very easy to work with, especially when they aren't magnified. It becomes very hard to interpret the bar charts with ease when trading the market thus making them not very popular among stock traders.
A Bar chart that is not magnified makes it hard to view the opening and closing price as illustrated by this example:
MetaTrader 4 Candles Charts
Candles Charts - This is the most widely used type of charts, they resemble candlesticks, thus their name - candle-sticks charts.
Candle-sticks charts portrays the opening, closing, the high & the low of a particular price interval.
The range between the open price & the close price is called the body of the candle.
Stock Indices candles charts is the most popular type of charts among online traders because it is the easiest to interpret when trading the market. Stock Indices candlestick charts also gives a lot of information about the price movement. This makes candles charts the most widely used type of charting in Stock Indices.
Candles Charts
Below is an example of candles charts. To learn more about candles charts, read this topic: Analysis of Japanese Candles Setups in Stock Indices.
How to Select These Chart Types on MT4 Platform
To draw any of the types of charts on the MT4 Platform a trader can use the buttons below found on this MT4 platform.
Drawing Charts on MetaTrader 4
- To Choose a Bar Chart Click the Bar Button
- To Choose a Candles Chart Click the Candlestick Button
- To Choose a Line Charts - Click the Line Button
What is a Trade Plan? - Written Plan Template Example
Alternatives: Automated EA Robots or Copy Paste Signals
