You should remember how to read the chart on MT4 in order to conduct Forex. Of course you can trade even if you do not know how to read the chart, but if you can read the chart you can predict the movements of the market so it will be useful for the trade. I will introduce how to easily read the chart for MT4 usage course for FX beginners.
Look at the trend
Reading the chart on MT4 is done to understand the trend. Candlesticks are often used as charts. If the candlestick is proceeding to the upper right, it is an upward trend, and if it goes to the lower right it can be read as a descending trend. Entry is done by buying at the time of an upward trend and entry at selling at the time of descending trend.
The basics of reading charts on MT4 are easy to understand when using candlesticks. The white body part is the positive line, the black body part is the hidden line, the bottom of the positive line is the closing price at the top of the opening price, the reverse side is the hidden line, the bottom of the closing price is the opening price at the bottom. You will get used to it and able to read if you actually use candlestick charts.
And the line protruding from the body of positive and negative lines is called beard, the tip of the upper beard is high and the tip of the lower bear shows the low price. However, even with candlesticks, since there are minute, daily, monthly and annual charts, reading will also change depending on which period you use your chart.
Moving average line
To judge a trend, since accuracy is low if only candlestick, use the moving average line next. The moving average line is a 5-day moving average line representing the average value over the past 5 days and there is a 25-day moving average line representing the average value over the past 25 days.
For example, if both the 5-day moving average line and the 25-day moving average line are upwards, you can see that the chart is an upward trend. If you know that it is a rising trend, you can enter by buy.
But the trend has a turning point. Even if it is an upward trend, for example, it will eventually convert and become a downward trend. In order to know that, it is good to use a trend line.
Unlike the moving average line, you have to think on the trend line by drawing your own line. If you draw a line by tracing the points of the low price of the chart, it becomes the trend line of the lower price support line, conversely if you draw the line by tracing the high price, it becomes a value support line. If it falls beyond the lower price support line during the upward trend, it can be predicted that it will be a turning point from an upward trend to a downward trend.
The trend line draws mutual high price and mutual low price together, but the chart is formed by making mountains and valleys and waving. It is the trend line that draws the bottom value of this valley and the high value of the mountain. The trend line is a line that you have to draw on your own, and gets better by practicing several times.
Basically, we use candlestick, moving average line and trend line. However, there are indicators of one-piece equilibrium table, Bollinger band, RSI, stochastic, MACD, so you can also read charts using such indicators.
If you read the chart on MT4, you can raise the winning percentage with more predictions instead of the 50% gamble of whether the market value goes up or down.