Drawing Candlesticks Charts in MetaTrader 4
The fourth option on the MetaTrader 4 charts menu is the candlesticks button - used to select the chart to trade with as candles.
To trade with these candlesticks, the above button keys shows where a trader should choose the button do choose this option.
These are drawn using also color coding:
Red - Price went down
Blue - Price went up
This chart type is also preferred by many traders because they are more appealing for technical analysis and easier to trade with. A lot of information can be interpreted from these charts.
These will show the Opening, High, Low, Closing price of a particular time period. This is abbreviated O H C L.
The body of the candlesticks will show currency pair movement that was within the opening and closing price of a specific trading period - it is also used to determine a lot of information. For examples in the above chart the long blue body meant there were a lot of buyers & therefore the price movement was likely to continue in the upward bullish trend direction.
The upper & lower shadow, the wicks of the candle will show the highest point and the lowest point that the price reached.
Japanese Forex Candlesticks Tutorials
The Japanese patterns guides can be used to learn how to determine trend reversal signals or trend continuation signals from the different patterns & formations.
To learn more about the various Forex strategies for trading these patterns, a trader can read these lessons:
· Inverted Hammer Candle Pattern & Shooting Star Candle Pattern
· Piercing Line Candle Pattern & Dark Cloud Cover Candle Pattern
· Morning Star Candlesticks and Evening Star Candlesticks
