<Last updated 25.04.2020>
Hi! If you are interested in Forex please read carefully the below article that shows how you can use the trading platform to find historical data of every product offered and make use of the various analysis tools.
Price charts are showing a record of price updates. They are showing how prices moved for a specific period. These help us identify and quantify two crucial components for successful market timing/speculating.
Charting the Market: Chartists use bar charts, candlestick, or point and figure charts to look for patterns which may indicate future price movements. They also analyze volume and other psychological indicators ( % of bulls vs % of bears). Strict chartists don’t care about fundamentals at all.
This is a Price Chart of the MT4 Platform.
After choosing the desired Instrument, for example, on the Market Watch, you can choose to create a chart window that shows the historical prices in the format as depicted here.
Price charts are showing a record/historical data of price updates. They are showing how prices moved for a specific period in the past, from 1- minute to hours to months.
Whatever influences price is reflected in the price (technical analyst’s assumption). Whatever influences price is reflected in the price.
All of the above form Thoughts and Perceptions that eventually result in trading actions.
Types of Charts
Drawing Bar (OHLC) Charts
> Each bar is composed of 4 elements:
Note that the candlestick body is empty (white) on up days, and filled (some color) on down days
There are different ways to present the historical prices. By taking into account the chosen time period of concern we have the below types:
Price Data as Candlesticks
Depending on the chosen timeframe for presenting the data, candlesticks are created. The opening price is the first price of the period and the close price is the last price for that period. ( for example 1m, 5m, 1 month etc).
The candlestick started to form at the opening price. Then the Price moved first downwards and then Quickly upwards until the current level.
From the opening price until the current level we have a green indication to show how the price moved (upwards).
These are examples of periods where the open price is below the close price of the candlestick. This means that the price eventually moved upwards for that period. The last case shows open=close.
Right-click on the MT4 platform and select Timeframes. Choose what kind of chart you want to create. By selecting 15 min, for example, you will have a chart in which each candlestick will represent how price moved for 15 minutes.
Different time frame chart for different trading styles. For example, you can choose if you want each candlestick to be a period of 1 min, 5 min, 15 min or more.
The current candlestick shows what happened for 15 min (from 17:00 until 17:15) The candlestick after that will show what happened the next 15 minutes and so on.
A data window shows for each candlestick the Time/Date, which is the time the candle started to form with the opening price.
> OHLC prices are shown.
> Last Price for that candle is the Closing Price.
Objects on Chart
You can attach objects on the chart and these can be anything from trend lines to channels to indicators
Example: in the objects list you can see the Fibonacci Expansion placed on the chart
You can modify the Chart in such a way that you can have your own colors for The bearish and bullish candlesticks and much more.
In the common tab, you can find the option to enable the ASK line to be visible.
By default, the BID price is the one forming the candlesticks on the MT4, and the one only one shown live.
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