MT4 Candles CFDs Charts
A CFD Trading chart is a graphical representation of price movement of a cfd instrument over a given period of time.
Drawn on a grid and user is at liberty to select which chart timeframe they want to trade with. Cfd trader might choose to use hourly charts, daily charts or even 1 minutes chart timeframes.
To draw cfd charts, three methods are used. Techniques used to draw the charts defines the type of trading chart.
The three types of charts are: - Candlesticks CFDs Charts - Bar CFDs Charts - Line Charts
- Line charts
- Bar charts
- Candles charts - Most popular
MT4 Line Charts
A single line is plotted from one closing price to the next thus forming a continuous line.
This type of chart provides very little information on the chart & is therefore not very popular among traders. In fact this type of chart is rarely used by traders.
Line Chart in CFDs - This type of chart leaves out important data about price movement. Information such as opening, high & low point of the trade price which are not represented on the graph.
This makes this type of cfd line cfd chart to be considered sketchy by technical analysts.
The cfd chart below displays example of a cfd line trading chart.
MT4 Bar CFDs Charts
CFDs Trading Bar Charts - This type of chart shows the opening, closing, the high & the low, for a particular price interval and is represented by bars that look like the ones drawn below - hence its name bar charts
- Bar CFDs Charts - bar chart has a vertical bar showing the total price movement.
- Left horizontal bar the opening
- Right horizontal bar the closing
- High and low denoted by the highest & lowest point
However, these cfd bar charts are not very easy to work with, especially when they aren't magnified. It becomes very hard to analyze the bar charts with ease when trading the market thus making them not very popular among traders.
A Bar chart that is not magnified makes it hard to view the opening & closing price as shown by this example:
MT4 Candles CFDs Charts
Candlesticks CFDs Charts - This is the most widely used type of charts, they resemble candles, thus their name - candlesticks trading charts.
Candlesticks charts displays the opening, closing, the high & the low of a particular price interval.
The range between the open price and the close price is called the body of the candlestick.
candlesticks charts is the most popular type of charts among online cfd traders because it is the easiest to interpret when trading the market. CFD Trading candlestick charts also gives a lot of data about the price movement. This makes candlesticks charts the most widely used type of charting in CFD.
Candles Charts
Shown Below is example of candles charts. To learn & know more about trading candles charts, read this topic:Analysis of Japanese Candlesticks Patterns in CFDs Trading.
How to Select These Chart Types in MetaTrader 4 Platform
To draw any of the types of trading charts on the MetaTrader 4 Platform a trader can use the buttons below found on this MT4 trading platform.
Drawing CFDs Charts on MetaTrader 4 Platform
- To Select a Bar CFDs Chart Click the Bar Button Key
- To Choose a Candlesticks CFDs Chart Click the Candlestick Button Key
- To Select a Line Charts - Click the Line Button
What is a Trading Plan? - Writing a Trading Plan Example
Alternatives: EA Automated Robots or Copier Trading Signals
