Forex candlestick chart
Forex Candlestick chart shows sets of data consist of open, high, low, and close values of each period. The hollow and filled section is called “the body”. The lines above or below “the body” is called shadows or tails. If the stock is closed higher than opening price, then a hollow candlestick is drawn. In addition, if the stock closed lower than the opening price, a filled candlestick is drawn. In a hollow candlestick where closing price is higher than opening price, the lower body slows opening price and the upper body shows closing price. In a filled candlestick where closing price is lower than opening price, the lower body slows closing price and the upper body shows opening closing price. Hollow means stock up and filled means stock down.
Basic Candlestick
Must Read About Candlestick
After knowing the basic candlestick you now can make profit from candlestick using chart pattern. Chart pattern is a formation on forex chart that shows signs of future price movements. Charts show the relation between price and time. There are many types of charts like line chart (only shows closing price), bar charts (shows high and low price for one period, and closing price), and candlestick. Chartist uses this pattern to make buy/sell decision. Chart pattern is used in technical analysis which assumes that trend tend to repeat itself. There are many chart patterns. The popular are Head and shoulders, Cup and handle, Double tops and bottom, triple top and bottom, and triangle.
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