MT4 Bar Charts
A Stock Indices Trading chart is a graphical representation of stock index price movement of a stock indices instrument over a given period of time.
Drawn on a grid & the user is at liberty to select which stock indices chart time frame they want to trade with. The trader might choose to use hourly charts, daily charts or even 1 minutes chart time frames.
To draw stock indices charts, 3 techniques are used. The techniques used to draw the stock index charts defines the type of stock index chart.
The three types of stock indices charts are: - Bar Charts
- Line charts
- Bar charts
- Candlesticks stock indices charts - Most popular
MetaTrader 4 Line Charts
A single line is drawn from one closing stock index price to the next, forming a continuous line.
This type of chart provides very little information on the trading chart & is therefore not very popular among stock index traders. In fact this type of stock index chart is rarely used by traders.
Line Chart in Stock Index - This type of chart leaves out important information about stock index price movement. Information such as opening, high & low point of the stock index price that are not represented on the graph.
This makes this type of stock indices line chart to be considered sketchy by stock indices technical analysts.
The stock indices chart below shows an example of a stock indices line chart.
MT4 Bar Charts
Stock Index Bar Charts - This type of chart shows the opening, closing, the high and the low, for a particular stock index price interval and is represented by bars that look like the ones drawn below - hence its name bar charts
- Bar Charts - bar chart has a vertical bar showing the total stock index price movement.
- Left horizontal bar the opening
- Right horizontal bar the closing
- High and low denoted by the highest & lowest point
However, these stock indices bar charts are not very easy to work with, especially when they aren't magnified. It becomes very hard to interpret the bar charts with ease when trading the stock index market thus making them not very popular among stock index traders.
A Bar chart that is not magnified makes it hard to view the opening and closing stock index price as illustrated by this example:
MetaTrader 4 Candles Charts
Indices Candles Charts - This is the most widely used type of stock indices charts, they resemble candles, thus their name - candles charts.
Candlesticks charts shows the opening, closing, the high & the low of a particular stock index price interval.
The range between the open stock index price & the close stock index price is called the body of the candle.
Stock Indices Trading candles charts is the most popular type of stock indices charts among online traders because it is the easiest to interpret when trading the stock indices trading market. Stock Indices Trading candlestick charts also gives a lot of information about the stock index price movement. This makes candles charts the most widely used type of charting in Stock Indices.
Indices Candlesticks Charts
Below is an example of candlesticks charts. To learn more about candlesticks charts, read this topic: Technical Analysis of Japanese Candles Patterns in Stock Indices.
How to Select These Stock Indices Chart Types on MT4 Platform
To draw any of these types of stock indices charts on the MT4 Platform a trader can use the buttons below found on this MT4 software.
Drawing Stock Index Charts in MT4
- To Choose a Bar Chart Click the Bar Button
- To Choose a Candles Chart Click the Candlestick Button
- To Choose a Line Charts - Click the Line Button
