• Online forex trading

Forex Trading Candlestick Charts

Forex Candlestick charts includes a real body, and two lines above and below it. much like bar charts, candle stick charts also have open, high, low and close indicators.

• The high is the top point of the upper line.
• The low is the bottom point of the lower line.
• The close is the top point of the real body.
• The open is the bottom point of the real body.
• A hollow candlestick (a white real body) occurs when the close is above the open.
• A filled candlestick (a black real body) occurs if the close is below the open.
• Shadows are the lines above and bellow the real body, where the top one is the high and the lower is the low.

The history of Forex trading candlestick charts goes further back than Forex history, going back centuries when Japanese rice traders used it to calculate profits. Today candlestick charts are a highly recommended method for technical analysis, and in recent years its popularity has grown immensely.

Next are examples of different candlestick chart patterns:

• A bullish pattern, where the Forex trading currency opened close to its low and closed near the high, indicating an uptrend.
• A bearish pattern, where the currency opened close to its high and close near its low, indicating a downtrend and a currency drop.
• The hammer pattern is seen with a long lower shadow, and a small filled real body. A hammer is said to indicate the start of a change from a downtrend to an uptrend.
• The star pattern is seen as upper and lower shadows separated by a line that indicates an absence of a real body. This indicates either a change in trend or indecision.

Many Forex trading experts, and people who practice forex trading for a living, choose candlestick charts when analyzing the market, and after you practice using them you'll probably prefer them too.