Gold Trading Japanese Candles
XAUUSD Trading with Candle
Brief History
Candlesticks were created in the 18th century by the legendary rice trader called Homma Munehisa to give overview of opening, high, low and closing market xauusd price over a given period of time.
They were used by the legendary rice trader to predict future market xauusd prices. After dominating trading the rice market, Munehisa after that eventually moved to Tokyo Exchange where he gained huge fortunes using this analysis method. He is said to have made over one hundred consecutive winning trades.
Types of XAUUSD Trading charts
There are Three types of charts that are used in Gold: Line, bar and candlesticks.
Line - plots a continuous line connecting closing xauusd prices of gold.
Bars- displayed as sequence of OHCL bars. OHCL represents OPEN HIGH LOW & CLOSE. Opening xauusd price is displayed as a horizontal dash on the left & closing xauusd price as a horizontal dash on the right.
The main disadvantage of a bars is that it is not visually appealing, therefore most traders don't use them.
Candlesticks Patterns - Japanese Candlestick Charting Techniques - these use the same price data as bar charts (open, high, low, and close). However, they in a much more visually identifiable way which resembles a candle with wicks on both ends.
How to Interpret Japanese Candlestick Charting Techniques
The rectangle part is called the body.
The high and low are described as shadows & drawn as poking lines.
The color is either blue or red
- (Blue or Green Color) - Gold Prices moved up
- (Red Color) - Gold Prices moved down
Most gold trading platforms like the MT4, use colors to mark the direction. Colors used are blue or green: when price moves up, red: when price moves down.
Candles Vs. Bar Chart
When candles are used it's very easy to see if the xauusd price moved up or down as opposed to when a bars are used.
The Japanese Candlestick Charting Techniques also have very many formations that are used to trade the Gold market. Japanese Candle Charting Techniques - candles patterns have different technical analysis interpretation & the most common Japanese Candle Charting Techniques are:
The above Japanese Candlestick Charting Techniques and Patterns is what makes the Japanese candlesticks popular among xauusd trading technical traders & it is why this type of analysis are the most widely used when it comes to analyzing the gold market. The analysis for these Japanese candlesticks pattern formations in gold trading is the same as that one used in stocks trading - Japanese Candle Charting Techniques.
Drawing japanese Candles XAUUSD Charts in MT4 Platform
To draw these on the MT4, select the MT4 charts drawing tools within the "MT4 Toolbar" - shown below.
To view this tool-bar in MetaTrader 4 go to 'View' Next to file at top left corner of MT4 Platform, Click 'View', Then Click 'Toolbars', Then check 'Charts' Button Key. Above tool bar will appear.
Once the above tool bar, pops up you can then select the type you want to convert to, If you want to view using the bar format, click the bar tool button as displayed above, for line format click the line tool button, for Japanese candlesticks format click the "candlesticks tool button".
Gold Trading Japanese Candlesticks. Japanese Candlesticks Gold Candles Patterns - Gold Trading Using Candlesticks. Gold Trading with Candle Stick - Trade Gold Trading with XAUUSD Candlestick Pattern
