How to Use easyMarkets Charts
The charts on the easyMarkets platform are highly flexible and easy to use for understanding how a market has performed over a set time period in order to predict future price movements. You can analyse hundreds of instruments all on the one chart.
Different chart types
Log into the easyMarkets platform and click to see the Price Types of charts you can view – line, candlesticks and OHLC charts types. Note, on the right hand axis of the chart (the Y axis) you see prices and on the bottom (or X) axis you have time frames.
Line charts are perhaps the simplest way to view the data. A line is drawn across all closing prices to enable a reading of price action over a set period of time. They offer a quick and clear view of price direction.
Open-High-Low-Close (OHLC) bar charts give volatility information that you won’t get with line charts. You can determine volatility through the height of the bars and the market sentiment through the price range from open to close.
In the image on the left hand side we see the closing price is higher than the opening price meaning that the overall price direction was positive and therefore bullish. The image on the right shows a bearish price sentiment where the close price is lower than the open. The colours of the bars depend on the closing price versus the previous days close. A green bar shows that the close price is higher than the previous day’s close. If the close price is lower than the previous day’s then the bar is red.
Candlestick charts are one of the most popular ways to view charts as they provide quite a lot of information in a quick and easy manner. The ‘candles’ have a rectangular solid body, showing the range between opening price and closing price. The candles also have vertical lines (or wicks) at the top and bottom that show high to low range. A green candle shows that the close was higher than the previous close while a red candle shows the opposite – that the close was lower than the previous close.
At the top of the chart you can select which time scale (or period) you wish to view the chart in – from 1 minute to hourly, daily and even weekly charts.
Across the top of the chart you can select and overlay indicators on your chart for technical analysis. If you select the ‘indicator wizard’ you will get a large range of trend indicators to choose from including Simple Moving Average and Bollinger Bands® to name two and oscillators like RSI and MACD.
This allows you to add the charts of two markets onto the one chart so you can see how they compare and even analyse any correlations or divergences. In the image you can see the EUR/USD candlestick chart and below the XAU/USD (gold) line chart.
Other Tools on Top Bar
The three other functions you will find at the top of your chart is the global setting to set your time zone, a snap shot of your chart for easy sharing or to save in your trading diary, and the ability to view the chart full screen.
On the left hand side of the chart you have a range of tools to customize your view. Tools may help traders to recognise trends as they draw and mark up the charts.
The Pointer Tool
lets you zoom into details on the charts with cross hairs so you can get a more precise reading.
this allows you to draw a number of lines on the chart to assist you in your analysis. You can select to insert lines, arrows, trend lines, parallel lines and more. For a different view of the charts select the Shape tool to add rectangles, ellipses, triangles etc. You can also add a section of rays, fans and arcs for Fibonacci, Gann and more analyses.
To clear any shapes you’ve inserted, select them and press the ‘X’ to delete the specified shape. Or select to delete all shapes in one click. Alternatively, you can Duplicate selected shapes.
To remove any indicators or studies you have overlaid on your chart, click the Delete All Studies icon.
The ‘abc’ tool allows you to write text on the charts and add your own notes.
Trendlines help identify up, down or sideways trends by drawing a line between two highs or two lows. This makes it one of the most popular tools used on charts.
The basic trendline shows you a line segment; a ray shows an extended trendline to the right. The extended trendline extends in both directions. Parallel channels allow for quick drawing of parallel trendlines – you only need to draw the one line while the other is automatically generated.
Within the broader category of trendline are different tools that offer different versions of the basic trendline. While a simple trendline gives a line segment, an arrow shows a trendline with an arrow, and a ray draws a right-extended trendline. ‘Extended’ gives a trendline that is extended automatically from both the sides.
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