How to Read Three Type of Price Chart on MT4
To pursue forex trading business especially when going to trading, we are required to perform analysis including technical analysis. When performing technical analysis, price visualization on the chart, we must often see three graphic forms representing the price. That is line graph (line chart), bar graph (bar chart) and candlestick candlestick (candlestick). This article will discuss how to read price charts on MT4.
This line graph is the simplest graph. Only show closing price information. This graph connects each closing price that appears with the line. If it is connected line, then we can see picture or description of price movement of a pair.
However, there is a weakness in this line chart that is the lack of information that can be extracted. Sometimes we want to see movement information for a certain period. No high and low information, movement effects during data releases and more.
This type of chart is more complete. Can show information of opening price (opening), highest price (high), low price (low) and closing price (closing) in certain period.
The open price is pictured on the left and the price is close to the right. The high price is depicted with the tip of the Upper Shadow while the low price is depicted with the Lower Shadow end. If the open price is lower than the close price then the bullish price chart is formed while the open price higher than the close price is formed the bearish price chart.
Not only the price information is open, high, low and close, but we can also get the range trading information that occurs in the price chart. That is the difference between High and Low is the range of trading in points.
The last chart type is a candlestick. The information shown is almost similar to the Bar chart but more complete and engrossed. The difference with the bar chart is we can get real body information. That includes the price of open, close and among others.