Line, Japanese Candlesticks and Bar Charts on IQ Option – How do they Work?

IQ Option has four different trading charts on its platform. Each chart is unique in the way it forms and the way it displays information. But while one chart in IQ Option will help smooth out price difference and make it easier to spot trends and reversals; another will not allow you to see price dynamics.

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In today’s post, we are set to smooth those differences and to show you which charts are best to trade with and why.

1. Bar Charts in IQ Option.

Bars are charts used to visually represent singular price information of an asset at play.

They are similar to candlestick charts and have the same information as the Japanese candlesticks.

Ideally, an IQ Option Bar chart shows daily price range values: – open, high, low, and close to help traders catch trends and internalize information easily.

If anything, the only difference that comes out strong between bar charts and Japanese candlesticks is how they are formed. Bars end up having vertical lines and two smaller horizontal lines after they form completely – which is contrary to candlesticks.

How to activate Bar Charts in IQ Option.

If your account displays anything other than the bar chart, click on the charts tool and choose Bars.

Kenya Forex Expo - IQ Option Bar Charts

You can also open a DEMO account here to try it out if you aren’t already registered.

Translating information on Bar Charts.

As mentioned earlier, complete bar charts have vertical lines and two smaller horizontal lines.

The horizontal line to the left shows the opening price of the traded asset, and the line to the right shows the closing price.

Kenya Forex expo Bars explanation

On the other hand, the central vertical line joining the two horizontal lines represents the maximum and minimum amounts reached by the price over a specified period (the time frame).

Kenya Forex Expo - Bars Opening and Closing

How long does it take for one bar to form?

The time it takes for one bar to form depends on the time frames on your chart.

If you set your chart to a 5-minute time frame, each bar will form completely after every 5 minutes. Likewise, previous prices will be translated to depict how the price of the asset at play changed over time.

To change time frames on IQ Option, click on your preferred time below the chart and pick from 2 minutes to 30 days.

Kenya Forex Expo time frames

Can you pick trading signals on IQ Option Bar Charts?

Why not?

Like in all other charts, you can easily use the naked eye to tell if the market is trending.

As you might have noticed in the images above, bar charts form in green and red colors.

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Each color says something about the prices.

Green bars indicate that the price of an asset has grown while red bars indicate that it has fallen.

Kenya Forex Expo - Trends

2. Line Charts on IQ Option.

While most traders prefer candlesticks and bar charts over line charts, there isn’t so much difference in the tasks they perform.

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If anything, the difference you will notice is the color codding candlesticks and bar charts have over area/line/tick charts.

Otherwise, it is just as easy to pick the value of the asset (quotes) and to notice fluctuations on area charts as it is on other charts.

What are the features of a line chart? 

  • Line charts show the price change of assets.
  • Appears as a continuous zigzag.
  • The area under the line can be colored or not. You can change this on IQ option line chart settings.

How to activate a line chart on the IQ Option.

If your account displays anything other than the line chart, click on the charts tool and choose a line.

It is the first option in the list.

Kenya Forex Expo line chart on IQ Option

You can also open a DEMO account here to try it out if you aren’t already registered.

Like the bar charts, you can change time frames to see what quote an asset had at a certain moment.

Also Read: – How To Open an IQ Option Demo Account For Beginners.

3. Japanese Candlesticks.

What are Japanese Candlesticks?

Japanese candlesticks are technical analysis tools used by traders to tell changes in the price of an asset, to analyze price movements, and to add an appeal on the charts.

These tools are made up of colored rectangles and vertical lines, similar in appearance to candlesticks giving it its name.

The colored rectangles are the “body” of the candlestick while the lines above and below the body are called the “shadows”.

Japanese Candlesticks

Candlesticks of the same color can form in a row to form a trend. And a trend can be a signal to trade profitably.

What’s the significance of green candlesticks in IQ Option?

A green candlestick signifies an increase in asset prices.

Green candlesticks form continuously to indicate that the price of an asset has grown.

To know if there is significant growth in asset prices, look at the lower body (opening price) of the candle via a vis its upper body (closing price).

Is there so much a difference?

Hold that thought!

Now check the wicks.

Note: – The shadow under the body of the candlestick shows the minimum amount reached by the price of the asset over the candlestick time frame.

On the other hand, the shadow above the body shows the maximum price reached – making it easy for traders to preempt the next move.

Kenya Forex Expo Japanese Candlesticks

What’s the significance of RED candlesticks on IQ Option?

Red candlesticks signify a decrease in asset prices.

If the red candles form continuously, then it is an indication that prices are falling.

Charts on IQ Option

How long does it take to form one candle?

The time it takes to form one candle depends on the time frames on your chart.

If you set your chart to a 5-minute time frame, each candle will form completely after every 5 minutes.

You can set time frames from 2 minutes to 30 days.

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