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