How Do Candlesticks Work? - How Do Candlesticks Work?

Understanding Candles Charts - Understanding a Candle Chart

Candlesticks are used to represent price movement on charts - when prices move down or when they move up this price movement will be represented on the chart using candles.

Candlesticks will have different colors based on the direction of the price. For example:

When price move upward - green candles or blue candles or white candlesticks

When price move upwards - red candlesticks or black candlesticks

From the color of the candle traders can determine if the price moved up or moved down.

Candlesticks will also form different candles patterns and these different candles patterns are then used to interpret the price movement so as to help traders to predict the next likely price movement.

These candlesticks patterns represent repeating price patterns that commonly form on charts and these patterns can be used by traders to interpret and analyze price movement.

The use of candlesticks will entail a trader first learning about the various candles patterns that are used in forex. Then traders then will learn how to interpret and analyze each candle setup - and once traders learn these candlesticks setups they will then use this candle analysis knowledge to identify these candlesticks patterns on the charts that they will be trading and once they identify these patterns they will then know how to interpret these candlesticks patterns & their signals.

Candlesticks keep forming on the charts & this is why trader should learn about candles patterns and understand how to interpret these candlesticks pattern so that they will know what signals to trade when these patterns occur on the charts that they will be trading with.

How Do Candles Work? - Understanding Candlesticks Charts

Study More Lessons and Tutorials and Courses:

Trade Forex Trading

How Do Candlesticks Work? - How Do Candlesticks Work?

Understanding Candles Charts - Understanding a Candle Chart