Types of price charts in MT4 and MT5
It is scientifically proven that the most lucid way of analysis is the visual way. The easiest way for a person to analyze graphical information.
Traders use price charts in technical analysis of various financial instruments such as currencies, stocks, futures, CFDs, metals, etc. It is important to understand that a chart is nothing more than the mass behavior of a "market crowd" over a certain period of time.
Below we will consider the main types of trading charts on the example of popular trading platforms MetaTrader 4 и MetaTrader 5.
You can find 4 types of standard charts in the MetaTrader trading terminals:
- tick chart;
- line graph;
- graph of segments (bars);
- Japanese candles.
The MetaTrader 4 trading terminal allows you to analyze the following chart periods:
- M1: 1 minute;
- M5: 5 minutes;
- M15: 15 minutes;
- M30: 30 minutes;
- H1: 1 hour;
- H4: 4 hours;
- Daily: 1 day;
- Weekly: 1 week;
Monthly: 1 month.
The MetaTrader 5 trading terminal allows you to analyze the following chart periods:
- M1: 1 minute;
- M2: 2 minutes;
- M3: 3 minutes;
- M4: 4 minutes;
- M5: 5 minutes;
- M6: 6 minutes;
- M10: 10 minutes;
- M12: 12 minutes;
- M15: 15 minutes;
- M20: 20 minutes;
- M30: 30 minutes;
- H1: 1 hour;
- H2: 2 hours;
- H3: 3 hours;
- H4: 4 hours;
- H6: 6 hours;
- H8: 8 hours;
- H12: 12 hours;
- Daily: 1 day;
- Weekly: 1 week;
- Monthly: 1 month.
Let's take a closer look at the chart types in MT4 and MT5
Tick chart
Data charts in MT4 and MT5 have the smallest scale - 1 tick (a single quotation of bid and ask prices by a market maker). A tick chart is a chart of quotations Ask и Bidwhich look like columns on the price chart. The minimum level of each column in the tick chart is the Bid quote, and vice versa, the maximum level of each column is the Ask quote. As a rule, such charts are not used for market analysis, because their scale is so small, which makes such charts absolutely useless for it. However, they allow you to accurately identify support and resistance levels, as well as effectively increase the levels of selling and buying, carrying out this on the local highs and lows.
The following three types of chart display (lines, bars, Japanese candlesticks), in MetaTrader terminals, can be swapped by right-clicking on the trading chart and in the menu that appears click "Properties". The settings of the current trading chart will appear (the settings menu of the current trading chart can also be called by pressing F8). Then click on the item "General" and in this window you select the type of chart display that you need: bars, candlesticks, lines. After a choice we press "OK".
2. Line Chart
Closing prices (e.g. minutes, hours, days, etc.) are used to construct the chart. The closing prices are connected by a straight line. Most analysts believe that the closing price is the most important, which is why it is displayed in this type of chart.
Linear chart is recommended to be used for building on short segments from tick mode up to several minutes.
3. bars (Bar chart)
This is a chart consisting of bars, each of which shows the maximum price high (the upper point of the bar), the minimum price low (the lower point of the bar) , the opening price open (the line to the left of the vertical bar) and the closing price close (the line to the right of the vertical bar) for a given period of time. It is recommended to use for time intervals of 5 minutes and more.
4. Japanese candlesticks
This type of chart is similar to the bar chart, but more convenient in terms of visual perception. It also uses four price values, and each candle, like a bar chart, defines a specific period of time. This type of chart is very popular due to its clarity and ease of construction.
There are other charts in the financial market, for example: pipscale charts, tic-tac-toe charts, equi-dimensional charts, volume Japanese candlesticks, 3-line breakout charts, Kagi charts, and Renko charts. Whatever trade charts you have in your arsenal, all of them are designed to help you soberly analyze the market situation and achieve a decent success in such a difficult, but interesting case as trading on the market Forex.