By default, MT4(MetaTrader4) trading platform offers 3 options of price charts, which you can choose from the top side bar for each chart.
Here are the differences of each chart and benefits for investors.
Line charts help illustrate supply and demand by mapping time on the X-axis and price on the Y-axis.
The most simple of all charts is the line chart which connects a timescale’s closing prices without giving us any information about the trading range during the selected time interval.
This chart is helpful for understanding the major movements only.
The top of the vertical line indicates the highest price a security traded at during the day, and the bottom represents the lowest price.
The closing is displayed on the right side of the bar, and the opening price is shown on the left side of the bar.
Bar charts are very useful to draw trend lines.
This type of chart can also detect short term breakouts.
It is a combination of a line-chart and a bar-chart. It records four prices: open, close, high and low.
If the close price is higher than the open, the body is white and if the close is lower than the open, the body is black.
Candlestick charts are visually superior to bar charts, and are preferred by traders, because their coloured bodies help to identify support-resistance and
trend lines and buy/sell signals.