How to Read a Candlestick Oil Trading Chart

A beginners guide to crude oil trading - how to read oil charts. The 3 types of crude oil charts are line crude oil chart, bar oil chart & candlestick oil chart - these commonly used oil chart types are covered in this guides & beginners can learn how to interpret these charts from this tutorial.

This learn oil trading tutorial will show you how to read these candlesticks oil charts that are commonly used in the Oil Trading market.

How to Read Candlestick Oil Charts for Beginners

Line Charts - oil line oil charts draws a continuous line connecting closing oil prices of oil.

Oil Trading Line Charts - How to Read Candlestick Oil Charts for Beginners

Bars Charts - oil trading bar crude oil charts are displayed as sequence of OHCL bars. O H C L represents OPEN HIGH LOW & CLOSE. The Opening crude oil price is displayed as a horizontal dash on left and closing crude oil price as a horizontal dash on the right.

Oil Trading Bars Charts- How to Read Candlestick Oil Charts for Beginners

The main disadvantage of a bar oil charts is that it is not visually appealing, therefore most traders don't use them.

Candlesticks Oil Trading Charts - these candlesticks oil charts use the same crude oil price data as bar oil charts (open, high, low, and close). However, they in a much more visually identifiable way which resembles a candle stick with wicks on both ends.

How to Analyze Candle Sticks Oil Trading Charts

The rectangle part is called the body.

The high and low are described as shadows & drawn as poking lines.

How to Read Candlestick Oil Charts for Beginners

The color of the oil candlestick is either blue or red:

• (Blue or Green Color Candlesticks) - Oil Trading Prices moved up
• (Red Color Candles) - Oil Trading Prices moved down

Most oil trading platforms like the MT4 Crude Oil Trading Software, use colors to mark the direction of the oil price. Candles colors used are blue or green: when crude oil price moves upward, color of candle is blue: when crude oil price moves down, color of candle is red.

Candles Oil Trading Charts Vs. Bar Crude Oil Trading Charts

When Oil candles crude oil charts are used it's very easy to see if the crude oil price moved up or down as opposed to when bar crude oil charts are used.