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Introduction to trading platform | Chart Analysis & Types of order

trading platform

Most trading platforms are very similar in the way information is organized. Usually, when you open your trading platform, price is the biggest area that jumps right at you. Let’s take price charts on the next point.

Below the area of ​​price, we can usually see some pre-chosen indicators. For now, it is enough to know that indicators take price data of price charts and transform it into visual information in the form of bar charts, or other oscillating lines. Indicators are analyzed in details below.

Introduction to trading platform

Below that, they usually have information about your account, past trades or open positions. Traders often refer to this information as P & L, which is synonymous with profit and loss, and showing the current gain or loss of your open trades.

On the left, you usually find more tools to choose from, with prices. In addition, most trading platforms offer an additional list with other operating tools or other indicators on the left.

The top menu gives you access to all functions. There are usually also find shortcuts to select different time frames, changing the shape of the graph of prices (more to it on the next point) or directly add indicators.

And this is basically how most trading platforms are designed. Of course, you will see small changes, but for the most part, this guide will take initial steps easier and less overwhelming for you.

Platform

Types of Charts

Line graph

The line chart is the stock chart that looks so familiar because we’ve seen throughout our life on television and newspapers. The line graph committed all pricing information on a single line. The line chart is very useful when you want to get a wider picture, but a lot of information is lost, as we shall see in the next point.

Bar & Candle

Bar charts and candlestick charts are primarily used by traders (especially technical traders) because bars and candles show the volatility and all the movement in prices, while line charts only show the closing price.

graphs

The candlestick

BullishCandle1A candlestick or Candle represents the entire price movement for the specific period. For example, if it is the chart 1H (1 hour chart), each candle represents the price movement of a whole hour is observed, whereas the line graph only gives you one point for every hour.

The candlestick has 2 elements: the body and wick. The body is the part of box representing the distance between the opening and closing price. The wicks are the maximum and minimum price of that period.

The wicks are “sticking out” fine lines on both sides, representing the highest and lowest price during the specified period. Read the advanced guide candelabrum here.

BullishCandle2

Deadlines

Deadlines describe the time horizon of the price information shown in the graphs. Typical deadlines are monthly, weekly, daily (D1), 4 hours (H4), 1 hour (H1), 30 minutes (30 minutes), 15 minutes (15 minutes), 5 minutes (5 minutes) and 1 minute (1min ).

The frame size determines the period of time a candle. For example, a candle within four hours contains all price movements in that period of 4 hours. A daily time frame candle represents all time movements of that day.

Therefore, four candles 15 minute time frame represent 1 sail frame time of 1 hour. And 4 of candles within 1 hour (or 8 candles 15 minute time frame) represent 1 chandelier in the time frame of 4 hours.

Order Type

Market order

Market orders are the typical new orders MOST traders use Exclusively. When you click the ‘buy’ or ‘sell’ button in your trading platform, you place a market order and your trade is Executed at the current best available price. Basically, a market order to trade Enables you right away in That second you press the button.

Limit order

Limit orders are done at a price different from the current available price. For example, Apple ($ APPL) is listed at $ 128 currently are, but you want to buy it when it goes down to $ 125. So You have to place a limit buy order at $ 125 and raise price goes down to $ 125 , your order gets Executed and you can buy for $ 125 APPL. There are 4 different limit orders:

  • Buy Limit – Buying below current price
  • Sell ​​Stop – Selling below current price
  • Sell ​​limit – Selling above current price
  • Buy Stop – Buying above current price

Market vs. limit orders – click to enlarge

More concepts of trading execution and pricing information

Bid / Ask and Spread

The trading platform always shows two prices: supply and demand.

The following points explain the differences:

  • The bid price is always lower than the ask price
  • The price of the deal is that you can sell the instrument
  • The ask price is the price you can buy the instrument
  • The difference between the two is the spread

Bid_Ask

Introduction to the Colmex Pro trading platform

About the author

Yan

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