What is Candlestick in Stocks?
A Stocks candlestick is a stocks price representation of a stocks instrument which is used to represent the high, low, opening stocks price & closing stocks prices of a stocks instrument for a specific period of time. Stocks candlesticks resembles a candle with wicks on both ends thus their name - candlesticks.
This type of stocks price representation is commonly used by traders because it is easier to trade with and interpret when analyzing stock market price movement on the stocks charts.
This candlesticks pattern can be selected for trading in MT4 platform and traders can then use this candlesticks charts when trading stocks.
Candle Sticks Charts - these stocks candles charts use the same price data as bar charts (open, high, low, and close). The stocks candlesticks resembles a candle with wicks on both ends.
How to Analyze Candles Stocks Charts
The rectangle part is known as body.
The high & low are described as shadows and plotted as poking lines.
Stocks Candles Charts
The color of the stocks candle is either blue or red:
- (Blue or Green Color Candles) - Stocks Prices moved up
- (Red Color Candles) - Stocks Prices moved down
Most stock trading platforms like the MT4 Stocks Platform, use colors to mark the direction of the stocks price. Candles colors used are blue or green: when the price moves up, color of candle stick is blue: when price moves down, color of candle is red.
Drawing Stocks Candlesticks Charts on MetaTrader 4
To draw these on the MT4 Stocks Platform, select the charts plotting tools within the "MT4 Tool-bar" - shown below.
Drawing Stocks Candlesticks Charts on MetaTrader 4
To view this toolbar in MT4 platform go to "View" Next to file at the tops left corner of the MT4 Platform, Click "View", Then Click "Tool bars", Then check "Charts" Button. Above MT4 toolbar will appear.
Once the above charts toolbar, pops up you can then select the type of stocks chart you want to convert to, If you want to trade using the bar charts format, click the bar chart tool button as shown above, for line chart trading click the line charts tool button, for Japanese candlesticks charts click the "candlesticks charts tools button".
