How Do You Read a Forex Candlestick Chart?

Forex Candlestick Charts - these forex candlestick charts use the forex price data (open, high, low, and close forex price) to draw forex price movement in an identifiable way which resembles a candle with wicks on both ends.

How Do I Analyze Forex Candlestick Charts?

The rectangle section is called the body.

The high & low of the forex price are described as shadows and are drawn as poking lines.

How Do I Interpret Forex Candlestick Charts?

The color of the forex trading candle-stick is either blue or red:

• Blue Color Candles or Green Color Candles - Forex Prices moved up
• Red Color Candles - Forex Prices moved down

Most trading forex platforms like the MT4 Trading Forex Platform, use colors to mark the direction of the forex price. Forex candlesticks colors used are blue or green - when price moves up, - color of the forex candlestick is red - when price moves down.

Candlesticks Charts vs Bar Charts

When forex candlesticks trading charts are used it is very easy to determine if forex price moved up or forex price moved down as opposed to when forex bar charts are used.

The Japanese candle charts trading analysis also have very many forex candlesticks patterns that are used to analyze and trade Forex. These forex patterns have different technical analysis & most common are:

Marubozu and Doji Candle Patterns

Spinning Tops Candle Patterns

Reversal Patterns Forex Candlestick Patterns Candle Patterns

Inverted Hammer Candle Pattern & Shooting Star Candle Patterns

Piercing Line Forex Candle Pattern and Dark Cloud Cover Candle Patterns

Morning Star Candles & Evening Star Candles Forex Candle Patterns

How Do I Interpret Forex Candlestick Charts?