How to Trade a Candlestick Chart
A beginner stocks guide to stocks - how to read stocks charts. The 3 different types of stocks charts are line chart, bar chart and candle chart - these commonly used stocks chart types are explained in this learn stocks guide and beginner traders can learn how to Trade these stocks charts from this learn stocks charts tutorial.
This learn stocks charts tutorial will show you how to Trade these stocks candlesticks charts that are commonly used in stocks.
How Do I Trade Stocks Candlesticks Charts?
Stock Trading Line Charts - How Do I Trade Stocks Line Charts? - stocks line charts draws a continuous line connecting closing stocks prices of stocks.
Stocks Trade a Stocks Chart? - How Do I Trade Stocks Charts?
Stocks Bars Charts - stocks trading bar charts are displayed as sequence of OHCL bars. OHCL represents OPEN HIGH LOW and CLOSE. The Opening stocks price is displayed as a horizontal dash on the left & closing stocks price as a horizontal dash on the right.
Stocks Trade a Stocks Chart? - How Do I Trade Stocks Charts?
The main disadvantage of a bar charts is that these stocks charts not visually appealing, therefore most traders don't use them.
Candlesticks Charts - How Do I Trade Stocks Candlesticks Charts? - these stocks candles charts use the same price data as bar charts - open, high, low, and close. However, stocks candlesticks charts are drawn in a much more visually identifiable way which looks like a candle with wicks on both ends.
Stocks Trade a Candle Chart
Rectangle part of the stocks candlestick is called the body.
The high & low are described as shadows and are plotted as poking lines.
Candlesticks Charts - How Do I Trade Stocks Candles Charts
The color of the stocks trading candle is either blue or red:
- - Blue or Green Color Stocks Candles - Stocks prices moved upwards
- - Red Color Stocks Candles - Stocks prices moved downward
Most stocks trading softwares like the MT4 Stocks Platform, use colors to mark the direction of the stocks price. Stocks Trading candles colors used are blue or green: color of stocks candlestick is blue when price moves up - color of candle stick is red when price moves down.
Stocks Trade a Candlestick Chart? - How Do I Trade Stocks Candlesticks Charts?
When Stocks candlesticks charts are used it is very easy to see if the stocks price moved upward or downward as opposed to when stocks trading bar charts are used.
Stocks Trade a Candlestick Chart?
