How do I change the chart type on MT4?
– The broker you should try to trade cryptos & US stocks. Learn more!
It is no doubt that technical analysts hardly make any trading decisions without technical charts representing historic price, volume, and time intervals. Traders are offered three different types of charts when trading in MT4. This article shows you how to change the MT4 chart type.
How to change the chart type
In MT4, there are three different chart types to show the price movement of an asset. There are several methods you can use to switch between these chart types.
The fastest way is by using the Charts Toolbar.
To do this, click on your preferred candlestick icon on the Toolbar to change to chart type:
Then your chart is switched into your selected type.
Note: In case the chart types aren’t displayed in the toolbars, please click on View > Toolbars > Standard. Different chart types then are shown.
What are different chart types in MT4
Like most trading platforms, MT4 provides traders three types of charts, including:
- Candlestick chart
- Bar chart
- Line chart
A candlestick chart represents the price movements of instruments over a certain time period. This type of chart is quite popular among traders because they are easy to read and understand.
A candlestick offers a wide range of information in a simple manner, including the high, low, open, and closing prices over a specific time frame. The trader can fix this time frame as per his requirement.
For example, if the time limit is fixed one hour, then a new candlestick is created in the graph every hour.
A candlestick is composed of a body and wicks (thin lines extending above and below the body).
- The “body” of each candlestick shows the opening and closing prices
- The candle “wicks” display the high and low prices for each period.
The color of the candlestick indicates whether the value of the asset rose or fell over the period. More specifically, the hollow candles reflect that price closed higher than where it opened (often called a bullish candle), and every candle that is white means the price closed lower than where it opened (often called a bearish candle).
What makes the candlestick chart an improvement over others is that it provides the trader with more information while remaining easy to view at a glance. Hence, the candlestick chart is by far the most popular type of chart used in technical analysis.
Like the above charts, a bar chart reflects the price movement of a financial instrument. Each bar represents a specific interval of time.
- The vertical line is created by the high and low prices for the bar.
- The dash to the bar left was the opening price, and the dash to the right signals the closing price.
Traders may find bar charts hard to follow at first sight, but in essence, bar charts are quite straightforward to read and great for analysis.
By removing the color from the chart, traders can view the market sentiment (bullish/bearish) with an uncomplicated outlook, which especially benefits trend traders.
Line charts are the most basic chart type. The charts typically display closing prices and nothing else. Each closing price is linked to the previous closing price to make a continuous line that is easy to follow.
Although the line chart provides less information than candlestick or bar charts, it is better for viewing at a glance for a simplistic market view. Price charts also help easily visualize a developing trend. This is done just by looking at the direction the line is taking.
In addition, the line chart can assist in managing the emotions of trading by eliminating ‘choppy’ movements in different colors as seen in the candlestick charts and selecting a neutral color like the blue chart depicted above.
In conclusion, although these different charts are all created using the same price data, they display the data in different ways. Hence, the selection of a trading chart is largely a matter of personal preference. The ease of reading and understanding should be put as a priority consideration. If you’re interested in experiencing the different chart types and understanding their capabilities, use the MT4 demo account before jumping into trading with real money.
Read more: MT4