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Reading Candlestick Chart

Reading Candlestick Charts

Candlestick charts have exactly the same "features" as a bar chart with open, high, low and close prices within one vertical bar, except that the bar is more like a larger block which is down right in the middle of the vertical line and it shows the range of opening and closing prices. Colors are also involved in Candlestick charts. 

If the block is green that tells us that the closing price is higher than the opening price (the price is moving uptrend/bullish).

If the block is red that tells us that the closing price is lower than the opening price (the price is moving downtrend/bearish)

Candlestick charts are most favored among forex traders because of its colors! It is easier to focus on something and remember it better if it has colors (true fact!).

forex_chandlestick_chart1.jpg