How to Read a Silver Trading Chart
When it comes to trading the xagusd trading market the silver chart is the basic trading tool used by all traders. The silver chart will show information about a silver trading instrument - the silver chart will show the general direction of xagusd prices, the chart will also show the current price of silver and the chart will also show the historical movement of chart xagusd prices.
Traders will use these charts to determine where to place trades. From the chart the trader will analyze the xagusd trading market movements using technical indicators so as to determine the direction of the market and determine the trade to open.
Traders must therefore learn how to use silver charts before they can start transacting in the online xagusd market.
The following are the various things that a trader will need to know about xagusd charts.
Types of Charts
There are three types of silver charts
Line Silver Trading Chart - this charting method draws a continuous line that connects the closing xagusd prices. For example if a trader is using the 5 minutes chart then this line silver chart will draw a continuous line that connects closing xagusd price of the xagusd trading market after every 5 minutes.
Bar Silver Trading Chart –This chart use bars to represent xagusd price movements, and plots OHCL –Opening xagusd price, High, Low, and Closing xagusd price for that period, for example if the period used is 5 minutes, the bar will represent the xagusd price data and the OHCL points for the 5 minutes.
Candlestick Silver Trading Charts –The are the most popular chart types as they are the most visually appealing and they represent the xagusd price movements in an easily identifiable way which clearly show when a market moves up or when it moves down using different colors to differentiate the direction. These candlestick silver chart look like a candle and they have a body that resembles the wax part of a candle and an upper and a lower poking line that resembles the wick of a candle.
XAGUSD Trading Chart Periods –Chart Time Frames
A silver chart will draw charts based on different time periods - these are 1 minute, 5 minute, 15 minute, 1 hour, 4 hour, 1 day, 1week and 1 month. The period used to draw chart data is also referred to as a silver chart time frame, for example the 5 min chart period is commonly referred to as the 5 min silver chart by trader. This 5 min chart time frame will represent data for the five minutes of trading, after those five minutes another set of data will be used to draw another chart representation. For example if a trader is using candlesticks xagusd trading chart, the data of one candle-stick will draw data of that five minutes, after those five minute another candle will be drawn using xagusd price data of the next five minutes - when these candles are combined they then make a graph representation that shows the general direction of xagusd prices commonly known as the trend. Silver traders can then use this information to make trading decisions.
Because the most commonly used charts are candlesticks silver charts we shall discuss how to read silver charts specifically candlestick xagusd charts.
How to Use Candlestick XAGUSD Trading Charts
The candlestick silver charts uses candlestick that have different colors to represent different xagusd price moves, blue candlesticks show xagusd prices closed higher than they opened, red candlesticks show xagusd prices closed lower than they opened. This color representation is then used by xagusd traders to determine when xagusd price has moved up or down.
The candles also show OHCL:
O - Opening Silver Price
H - Highest Silver Price
C - Closing Silver Price
L - Lowest Silver Price
These xagusd price points are represented using a formation that looks like a candlestick, the distance between the opening xagusd price and closing xagusd price is represented by what's known as body, this part resembles the wax part of a candle. High xagusd price is represented by a poking line protruding upward, this line resembles the wick of a candlestick, the low xagusd price is represented by a poking line protruding downward & it also looks like a candle wick facing down.
Candlesticks
A trader can also add a silver indicator on the silver chart so that they can analyze the chart market using these indicators. Silver traders will need to place indicators on the silver trading so that they can get additional information about a silver trend & therefore be in a better position to make a more informed trading decision. These technical indicators can be used to predict the likely market direction that the xagusd trading market is likely to keep moving in whether up or down.
A trader can use indicators such as the moving averages and Bollinger to determine the trend. Silver traders can also use other indicators such as the RSI and stochastic oscillators to determine when to open trades.
Silver Trend lines are also used to determine the direction of the candlestick silver charts trends and these lines can drawn on the charts to show this direction. A upward silver trend will be shown by a silver trend line is moving up while a silver trend that is moving down will b e shown a silver trend-line that is moving downward.
To learn how to draw a silver trend line & how to trade using technical analysis a trader can learn about the silver trend line lesson under the learn silver trading lessons section of this website, for indicators a trader can learn about silver indicators & their technical analysis on the silver indicators section of this website.
