What Do Forex Candlesticks Mean in Trading? - Forex Candlesticks
What's the Meaning of a Forex Candlesticks? - Forex Candlestick Definition
Forex candlesticks are types of forex chart used in forex trading. Forex candlesticks charts provide an array of forex trading about forex price movement.
For example, forex candlesticks have different colors to differentiate the forex price movement for a particular forex candlestick. For example:
When forex price moves up - green candlesticks or blue candlesticks or white forex candles are formed
When forex price moves down - red candlesticks or black forex candles are formed
The forex candlesticks will also provide the following information about forex price movement - OHCL
Opening
High
Closing
Low
Opening will show where the price opened for a particular forex candlestick
Closing will show where the price closed for a particular forex candlestick
High will show the highest price for a particular forex candlestick
Low will show the lowest price for a particular forex candlestick
This information will then be used by traders to analyze the forex movement based on this OHCL information provided by the forex candles.
The forex candles look like a candlestick with wicks on both ends
The body of the candle represents the forex price movement between the opening price & closing price of a particular forex trading candlestick.
The wicks which are also referred to as forex candlesticks shadows represent the High and the Low of the forex price for a particular forex trading candlestick.
Forex Candlesticks formations will form different patterns:
For example long body forex candlesticks will show that forex prices made a big move between the forex opening price & the forex closing price and this can be interpreted that the forex prices had a lot of momentum and there were a lot of buyers or sellers depending on the direction and color of the forex trading candlestick.
For example -
Long forex candlesticks that are blue or green in color means there were a lot of buyers as forex prices made a big move upwards
Long forex candlesticks that are red color means there were a lot of seller as forex prices made a big move downwards
Long Forex candlesticks wick or long forex candlesticks shadows will mean that one side moved prices in one direction a great deal but this side was not able to gain control of the market because the forex price were then pushed back in the other direction - therefore this made the long wick forex trading candle pattern.
For example -
A long wick upwards means that buyers really pushed the forex price upwards but the buyers did not gain control of the forex market as the prices were then pushed down by forex sellers and the forex price then managed to close much lower from where the buyers had pushed it to.
A long wick downwards means that sellers really pushed the forex price downwards but the sellers did not gain control of the forex market as the prices were then pushed back up by forex buyers and the forex price then managed to close much higher from where the sellers had pushed it down to.
With different forex candlesticks pattern there are different technical analysis of these forex candlesticks setups
Each setup has a different interpretation & each setup gives a different forex trading signal.
Forex traders should learn and understand the various different forex candlesticks patterns setup and how to interpret these forex candlesticks setups to generate forex trading signals using forex candles.
What Do Candlesticks Mean in Forex? - What Do Forex Candlesticks Mean in Trading? - What Does Forex Candlestick Mean - What is the Meaning of a Forex Candles - Forex Candlesticks Meaning - Forex Candlestick Definition
