Learn Forex Candlestick Charts
Learning Forex Candlestick Charts.
Components of candles.
Most traders are familiar with open high, close low bars which represent the price movement during the time period in question.
Candles however look a bit different. They are made up of a "body" and a projection called a "shadow" or "wick" or "tail". They are also coloured usually blue and red – or green and red. They actually display the same information as the open high close low price bars.
A bullish candle has a blue or green body with the OPEN price being the base of the green "body" and the low price the bottom of the tail… and the CLOSE price being at the top of the blue body and the high price at the top of the upper tail.
A Bearish candle has a red body with the OPEN price represented by the top of the red body and high price top of the upper tail. The low price is the low point of the lower tail and the CLOSE price by the base of the red body.
The following video has some more information on how this works in trading.
More articles on Candlestick Charts
Shedding Light On Candlestick Charts For Forex Traders
