Forex Candlesticks Tell A Story

[TLenyk]

Technical Forex Traders and Japanese Candlestick Charts
By Tracy Lenyk

Successful technical traders read charts like doctors read x-ray files. What do charts do and why are they important? Charts tell a story. The charts tell traders where the market is going. The question is; do we want to buy or sell the currency as compared to its counterpart.

Forex traders need to understand and know how to read Japanese candlesticks.


When a currency opens it shows you the bottom, Bull side. Then it travels down in value and then back up, passing the opening value and closing above the opening value. This is now the process of the candlestick.

For a bear market the opposite is true. So currency moves up or goes high and then moves down and closes below its opening value. This the bear market

If, we are selling currency we want to see a lot of bear candles and if we are buying we want a lot of bull candles.

Price fluctuation will happen in a certain time frame. When you are looking at a 240 chart you are looking at all the transaction that took place within a 2 minute and 40 second window.

Japanese candlesticks are telling us a story. In the forex market there are 4 candlesticks to be concerned with, Engulfing candle, Doji stars, Independent candles tweezers and exhaustion candles.

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[ProfitMaximizer101]

The candlesticks technique displays a more apparent relationship between the four major points which goes to make a particular pattern. Just one simple glance will make the traders know the underlying price action which is being projected by it. There are far more certainty involving the interpretation predicting a price action in case of candlesticks technique which supersedes the other such techniques used in Forex. But at the same time i would also like to mention that The candlesticks technique cannot predict the volatility of the price actions during different trading stages which is one negative point for Candlesticks.