What is a Candle in Gold Trading?
A Gold Trading candlestick is a xauusd price representation which is used to represent the high, low, opening xauusd price and closing xauusd prices for a specific period of time. Gold candlesticks resembles a candlestick with wicks on both ends thus their name - candles.
This type of xauusd price representation is commonly used by traders because it is easier to trade with and interpret when analyzing xauusd price movement on the xauusd charts.
This candles pattern can be selected for trading in MetaTrader 4 platform & traders can then use this candles charts when trading gold.
Candle Sticks Charts - these gold candles charts use the same price data as bar charts (open, high, low, and close). The gold candlesticks resembles a candle with wicks on both ends.
How to Analyze Candlesticks XAUUSD Charts
The rectangle part is called the body.
The high and low are described as shadows & drawn as poking lines.
Gold Candles Charts
The color of the xauusd candlestick is either blue or red:
- (Blue or Green Color Candles) - Gold Prices moved up
- (Red Color Candlesticks) - Gold Prices moved down
Most gold trading platforms like the MT4 XAUUSD Trading Software, use colors to mark the direction of the xauusd price. Candles colors used are blue or green: when price moves upwards, color of candlestick is blue: when price moves downward, color of candlestick is red.
Drawing XAUUSD Candlesticks Charts on MT4
To draw these on the MT4 Gold Trading Platform, choose the charts plotting tools within the "MT4 Toolbar" - shown below.
Drawing Gold Candlesticks Charts on MT4
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 'Tool bars', Then check the 'Charts' Button. The above MT4 toolbar will appear.
Once above charts toolbar, pops up you can then select the type of gold chart you want to convert to, If you want to trade using the bar chart format, click the bar chart tool button as shown above, for line chart trading click the line charts tool button key, for Japanese candles charts click the "candlesticks charts tool button key".
