What's a Candlesticks Chart in Forex Trading?

Types of Charts in Forex Trading

There are 3 types of charts used in Forex: Line charts, bar charts & candlesticks charts.

Candle Sticks Charts - the candles charts use the same price data as bar charts (open, high, low, & close). However, they in a much more easily identifiable way which resembles a candlestick with wicks on both ends.

How to Read Forex Candlestick Charts

The rectangle section is called the body.

The high and low are described as shadows & plotted as poking lines.

How to Read Forex Candlestick Charts - What is a Candlesticks Chart in Forex Trading?

The color of the forex candle is either blue or red

• (Blue or Green Color candlestick) - Prices moved up
• (Red Color candle) - Prices moved down

Most trading platforms like the MT4 Forex Trading Platform , use colors to mark the direction. Colors used are blue or green: - green candlestick when price moves up, red candle stick when price moves down.