Trade Forex Trading

How Do Candlesticks Work? - How Do Candlesticks Work?

Understanding Candles Charts - Understanding a Candle Chart

Candlesticks serve as the graphical representation of price fluctuations on trading charts - any downward or upward movement in price will be depicted on the chart through the medium of these candles.

The coloring of candlesticks will change based on the market's direction of movement. For example:

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

  • When price move upwards - red candlesticks or black candlesticks

The color of a trading candle reveals to the analyst whether the price experienced an upward or downward movement.

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.

Candlestick patterns show common price repeats on charts. Traders use them to read moves.

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 appearing on the charts, which is why traders should learn about candlestick patterns. They should also understand how to read these patterns so they know what signals to trade when these patterns show up on the charts they use.

How Do Candles Work? - Understanding Candlesticks Charts

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