Drawing Candlesticks Charts in MetaTrader 4
The fourth option on the MT4 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 - Indices Price went down
Blue - Indices 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 data can be interpreted from these charts.
These will show the Opening, High, Low, Closing stock index price of a specific time period. This is abbreviated O-H-C-L.
The body of the candlesticks will show stock indices instrument movement that was within the opening & closing stock index price of a specific trading period - it is also used to determine a lot of data. For examples in the above chart the long blue body meant there were a lot of buyers and therefore the stock index price movement was likely to continue in the upwards bullish stock indices trend direction.
The upper and lower shadow, the wicks of the candlestick will show the highest point and the lowest point that the stock index price reached.
Japanese Stock Indices Trading Candles Lessons
The Japanese patterns guides can be used to learn how to determine stock indices trend reversal signals or stock indices trend continuation signals from different patterns & formations.
To study more about the various stock index trading strategies for trading these patterns, a trader can read these tutorials:
Inverted Hammer Candlestick Pattern & Shooting Star Candlestick Pattern
Piercing Line Stock Indices Candle Pattern & Dark Cloud Cover Candlestick Pattern
