WEBVTT 00:08.950 --> 00:10.410 I have opened my 00:10.450 --> 00:17.520 MetaTrader 4 so we can analyze the different types of charts. Here you can see that we have three buttons 00:17.820 --> 00:24.830 and they identify three different charts that you can use with your MetaTrader 4. The first one is 00:24.840 --> 00:26.580 called bar chart; 00:26.580 --> 00:32.030 the second one candlestick chart and the last one is called Line chart. 00:32.040 --> 00:36.210 Let's start with the line chart because it is very easy. 00:36.750 --> 00:45.120 If the price of euro-dollar was 1.11 yesterday and it is 1.12 today, the line chart 00:45.180 --> 00:48.330 would only connect the two points with a line. 00:48.570 --> 00:55.810 So it is very easy to understand with a quick look if the price is going up or down. 00:55.830 --> 00:59.840 The second chart I'm going to introduce is the bar chart. 01:00.330 --> 01:06.390 While the line chart gives information only about the opening and closing prices, 01:06.450 --> 01:14.310 the bar chart also provides you with information about the high and the low for the session. 01:14.310 --> 01:21.140 The horizontal dash on the left side indicates the opening price and the dash on the right side indicates 01:21.150 --> 01:23.190 the closing price. 01:23.190 --> 01:27.780 The vertical line gives information about high and low. 01:27.870 --> 01:32.510 The bottom of the vertical line is the lowest price reached during the session. 01:32.640 --> 01:38.910 While the top of the vertical line represents the highest point reached during the session. 01:38.910 --> 01:41.930 For example we can have a bar like this. 01:42.150 --> 01:45.900 What kind of information can you read on this bar? 01:45.960 --> 01:51.930 You can say that at the beginning of the session the price was 1.12, during the session the 01:51.930 --> 01:55.460 price dropped to 1.1150, 01:55.470 --> 01:58.500 that is the lowest point for the session. 01:59.010 --> 02:02.760 The price also reached 1.1370, 02:02.760 --> 02:05.370 that is the peak for this session. 02:05.610 --> 02:13.140 At the end of the session the price closed at 1.1290. With a simple bar you get a lot 02:13.140 --> 02:15.990 of information. Last chart 02:15.990 --> 02:22.080 we need to analyze is the candlestick chart that, as you may have guessed looking at the title of the 02:22.080 --> 02:29.280 course, it is the one that we are going to use. The candlestick chart is built in the same way and 02:29.280 --> 02:32.870 gives exactly the same information as the bar chart. 02:33.030 --> 02:39.810 But it is displayed in a way that you can quickly analyze the movements and the trends on the market. 02:39.810 --> 02:42.350 A candle stick looks like this. 02:42.390 --> 02:45.270 We have a vertical line that is called Shadow. 02:45.390 --> 02:48.950 So we have the upper shadow and the lower shadow. 02:49.200 --> 02:54.610 Then we have a large block in the middle that is called body or real body. 02:55.080 --> 03:02.080 The real body is usually coloured to give traders a quick idea about the direction of the price. 03:02.130 --> 03:07.730 I use green candles when the price goes up and red candles when the price goes down. 03:08.010 --> 03:14.070 Another popular choice is to have white candles when the price goes up and black candles when the price 03:14.070 --> 03:15.250 goes down. 03:15.750 --> 03:22.010 I use the price example that I have used for the bar chart so you can see that the candlestick 03:22.010 --> 03:27.880 chart is the same. The opening price is at 1.12. Then the lower shadow 03:27.880 --> 03:33.320 shows a low at 1.1150 and the upper shadow shows a high 03:33.320 --> 03:40.710 at 1.1370. The price then closes at 1.1290. 03:40.740 --> 03:46.500 In addition, you have the colour of the candle that gives you immediately the information that the price 03:46.530 --> 03:48.730 increased in that session. 03:49.260 --> 03:52.270 Let's see an example on the Meta Trader. 03:52.620 --> 03:55.690 Here we have euro-dollar on a daily chart. 03:55.710 --> 04:01.920 I want to analyze this candle, not the last one because it is still live on the market and it can still 04:01.920 --> 04:04.200 form a new high or a new low 04:04.350 --> 04:08.560 and furthermore we don't know what will be the closing price. 04:08.580 --> 04:13.210 So I draw my lines to identify the key levels of this candle. 04:13.260 --> 04:20.860 We have the opening price then we have the closing price here, then the low 04:21.150 --> 04:24.240 and here we have the high. 04:24.240 --> 04:26.610 Also, there is no need to draw the lines. 04:26.640 --> 04:33.330 If you go with your mouse cursor on the candle Meta trader will give you all the information here. 04:33.780 --> 04:41.310 You can see o, h, l, c that stand for open, high, low and close.