Understanding how to read charts is one of the most important skills a beginner trader can develop on Quotex. Price charts help you analyze market movements, make smarter decisions, and time your trades with more confidence. Without learning this skill, trading becomes nothing more than guessing.
In this guide, you’ll learn the basics of how to read charts on Quotex, what different types of charts mean, and how to use indicators to help support your decisions.
Why Are Charts Important in Trading?
Charts visually represent the price movement of an asset (like currencies, stocks, or cryptocurrencies) over time. They help traders spot trends, patterns, and potential entry or exit points.
Rather than relying on emotions or predictions, chart reading allows you to make decisions based on actual price behavior.
Types of Charts on Quotex
Quotex offers several types of charts. Each one serves a slightly different purpose, depending on your trading style:
- Line Chart
- Simplest type of chart
- Connects closing prices over time
- Good for getting a quick overview of price direction
- Not ideal for short-term or detailed analysis
- Bar Chart
- Displays opening, closing, high, and low prices for each time period
- Vertical line shows the price range (high to low)
- Horizontal tick on the left = opening price
- Horizontal tick on the right = closing price
- Candlestick Chart (Most Popular)
- The most commonly used chart by traders on Quotex
- Each “candle” represents a specific time period (e.g., 1 minute, 5 minutes, etc.)
- A green candle means price went up (bullish), and a red candle means price went down (bearish)
- The candle’s “body” shows the opening and closing prices
- The thin lines (called wicks or shadows) show the high and low prices during that time
Candlestick charts are ideal for beginners because they provide rich visual data in a clear format.
Choosing a Time Frame
On Quotex, you can select different time frames like 5 seconds, 1 minute, or 5 minutes.
- Shorter time frames (5s–1min): Best for fast-paced trading and quick entries
- Longer time frames (5min–1hr): Good for analyzing trends and making more calculated decisions
If you’re new, it’s recommended to start with 1-minute or 5-minute charts, as they offer a balance between clarity and speed.
How to Read a Candlestick
Each candlestick gives you four key pieces of information:
- Open: The price at the beginning of the candle
- Close: The price at the end of the candle
- High: The highest price reached during that period
- Low: The lowest price during the same time
If the candle closes higher than it opened, it turns green. If it closes lower than it opened, it turns red.
This information helps you understand market behavior: whether buyers (bulls) or sellers (bears) are in control.
Spotting Trends
Trends are the overall direction in which the market is moving. There are three main types:
- Uptrend – Price makes higher highs and higher lows. Traders often place “UP” trades during uptrends.
- Downtrend – Price makes lower highs and lower lows. Ideal for “DOWN” trades.
- Sideways/Range-bound – Price moves within a horizontal zone. Traders often wait for breakouts or trade at support/resistance.
Use charts to identify trends before entering a trade.
Using Indicators on Quotex Charts
Quotex trading website offers many built-in indicators to enhance your chart reading. Some beginner-friendly options include:
- Moving Average (MA)
- Smooths out price action to show the average price over a period
- Helps confirm trends
- Relative Strength Index (RSI)
- Measures market momentum
- RSI above 70 = overbought (possible reversal down)
- RSI below 30 = oversold (possible reversal up)
- Bollinger Bands
- Shows price volatility
- When price hits upper band = might reverse down
- When price hits lower band = might reverse up
Don’t overload your chart with too many indicators. Two or three is enough for beginners.
Final Tips for Beginners
- Stick to one chart type (candlesticks are best to start with)
- Use higher time frames to get the full picture before making a trade
- Avoid trading in choppy, sideways markets unless you understand the risks
- Combine chart reading with good risk management
- Practice reading charts using a demo account first
Conclusion
Reading charts is not as complicated as it seems. Once you understand the basics of how to read candlesticks, spot trends, and apply simple indicators, you’ll be able to make more informed decisions on Quotex.
Take your time to practice. The more charts you analyze, the more patterns you’ll start to notice. With consistency and patience, you’ll build the confidence needed to trade smarter—not just faster.
