In this series of posts, I will introduce you to MetaTrader Charts. I will show you the different charts that MetaTrader provides you with. If you don’t know what MetaTrader, then see this article: What is MetaTrader?
I want to start the series with the basics. Here I will go about explaining how the market data can be represented in such way that we humans can easily make some sense of it.
Charts are the essential tool of any technical trader. We see the market through charts.
As you may know, it makes two persons to make a market. If someone sells EUR/USD at 1.0860 it means that someone has bought EUR/USD at 1.0860, thus the price at that moment was 1.0860.
Because there are thousands, or even millions, of transactions per second, looking at all these prices is insane, of course.
To make it easy, we condense and represent, for now, the last price seen when a period begins. For example, for one hour period, what was the price when the that hour started? I.e, at 9:00:00, for example, what was the last seen price?
If we plot the periods in the X axis and the price at the Y axis, we will get a chart like:
In MetaTrader, the platform I use for trading, the common periods, or Time Frames, are:
- 1 minute
- 5 minutes
- 15 minutes
- 30 minutes
- 1 hour
- 4 hours
- 1 day
- 1 week
- 1 month
Depends on the system, but normally I look into more than one timeframe, specially for trend following systems. Next in this blog, I will show you a system that requires you to use more than one chart.
The next image shows in MetaTrader 4 the available time frames:
You can also change the timeframes from the menu Charts > Timeframes
You also have access to the previous menu if you right click on the chart.
Next I will show you the Line Charts, the Bar Charts and the Candlestick charts, that are the most common used charts in MetaTrader 4.
If you have any question, suggestion, or would like to say hello, please let me know in the comments box.