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 candles
- 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 candlesticks patterns and these different candlesticks 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 candlesticks patterns that are used in forex. Then traders will then learn how to interpret and analyze each candlestick setup - and once traders learn these candlesticks setups they will then use this candlestick 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 and this is why trader should learn about candlesticks patterns and understand how to interpret these candles 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
