Candlestick Charts

[davidjss]

Candlestick Charts

The candlestick charts were invented by the Japanese in the 1700s. Just like a bar chart, a candlestick contains the market's open, closing, low and high price of a specific time frame. The main difference is the candlestick's body part, which represents the range between the opening price and the closing price of that particular time frame. When the body part is filled with red (or black), it means the closing is lower than the opening. When the body part is filled with blue (or white), it means the closing is higher than the opening. While the bar charts put more emphasis on the progression of closing price from the last bar to the next, while the candlestick charts put more emphasis on the relationship between the opening and the closing price within the same time frame. Above and below the candlestick's body are the ‘wicks', while the wick on the top is the highest price and the wick at the bottom is the lowest price of that period. Candlestick charts are more popular than the bar charts and the line charts, because they tend to be more visually appealing.

 

[junaid1001]

candlestick charts pattern are very useful for trader, i usually use bollinger band indicator on candlestick chart pattern and this strategy is i think very helpful for scalping.

 

[Taha Nizam]

candlestick patterns are very famous in technical trading and we can use it with other strategies. their are also a lot of pattern and we can use in our own way.

 

[kasual]

candlestick pattern and formation is one of technical analysis method and use mostly for price action traders. this is one of indicator that actually non lagging if compare it with another indicators. unfortunately many traders not interested with this technical analysis method since the form of pattern and formation is many.

 

[riddick09]

This is the most convenient indicator we have. Because, in Forex we will need to have at least an indicator that will show the market conditions to have our analysis. And candlestick chart is simple to use. Black candle will be usually the uptrend movement and white when we see the market movement down.

 

[Dmitriy Ushakov]

Candlestick analysis is one of the simplest options. It helps you to learn about coming trend reversal or confirm existing trend. When using it, you do not need to use complicated calculations or make labor-intensive configurations. You need tp simply find the familiar candles on the chart of the currency pair and make its classification.

 

[Lee Mark]

Candle chart is more informative than line chart! That’s way, maximum traders are involve with candle chart! I am also doing my trading based on PA strategy! Besides, I use Fibo and Trend line for verifying my entry and exit points!

 

[Faal]

I am also using candlestick chart to analyze the market with look on various timeframe which using weekly and daily candle to look possibility major trend and then using H1 to determine entry or M15 to get more detail price action

I like your technique on PA trading! Using multiple time frames it’s a good practice! Whatever, more than 90% Forex traders are using candle chart, because of its simplicity!

 

[Tom Latham]

This chart is my favorite one; it consists of lots of info; as a result I get much wider view on technical analysis!

 

[Alexander Hudson]

Every new trader should learn all the basics of forex perfectly and properly.

 

[Gito Dinev]

Candlestick chart is most used in trading. It is easy to understand especially for new traders.

 

[lisetteferrell]

Yeah @GitoDinev. It’s the most commonly used and popular chart pattern in trading. It gives a quick glance on the current market state by simple coloured bars.

 

[Alicia Lynch]

Candlesticks are a very popular chart. Performs technical analysis from beginner to professional trader. Candlesticks are very helpful for analysis.

 

[Cooper Truebridge]

Analyzing using a candlestick chart increases the profit percentage. Every trader uses a candlestick chart.

 

[Mark Dahl]

There is a lot of charts pattern. Sometimes it is hard to remember all.

 

[Eduardo Lucchese]

Candlestick Charts

The candlestick charts were invented by the Japanese in the 1700s. Just like a bar chart, a candlestick contains the market's open, closing, low and high price of a specific time frame. The main difference is the candlestick's body part, which represents the range between the opening price and the closing price of that particular time frame. When the body part is filled with red (or black), it means the closing is lower than the opening. When the body part is filled with blue (or white), it means the closing is higher than the opening. While the bar charts put more emphasis on the progression of closing price from the last bar to the next, while the candlestick charts put more emphasis on the relationship between the opening and the closing price within the same time frame. Above and below the candlestick's body are the ‘wicks', while the wick on the top is the highest price and the wick at the bottom is the lowest price of that period. Candlestick charts are more popular than the bar charts and the line charts, because they tend to be more visually appealing.

Very nicely explained.

 

[Karley Walker]

candlestick charts pattern are very useful for trader, i usually use bollinger band indicator on candlestick chart pattern and this strategy is i think very helpful for scalping.

Yes, you are right. There are many benefits to analyzing a candlestick chart.

 

[Adrienlord]

Candlestick charts are extremely informative and much more convenient to read than bar charts.

 

[Prefeent]

Candlestick charts are maybe the most informative and convenient representation of the price movements. The line charts are not so informative for trading purposes, that is why traders are more likely to use candlesticks rather than the line charts. The bar charts are quite informative but they are so inconvenient to read and analyse, from my perspective. That is why I think that the candlesticks charts are the best tools to analyse the markets.

 

[Kazumu Fukunaga]

There are lot of free resources for learning forex. Even you can download good forex book in free from different websites. You just need to do some searches on Google.