Forex Candles Candle Stick Explanation

Some experts will tell you that forex candle stick patterns are just mumbo jumbo. They might be right. But I make a lot of money from them so sod the experts !

There are 100's of books on the subject & hundreds of different patterns. You don't need to know them all to get started in forex, but being able to recognise the more obvious ones will certainly help your trading.

NEVER trade on candles alone. They are just a possible piece of the jig saw when helping you to decide whether to take a trade or not.

I use candle sticks. Green for going up & red for going down. I like to keep things nice & simple ! Candle sticks are the same on whichever time frame you choose. If you are not familiar with candle sticks see the diagram below for an explanation of the basics.

The bottom of the body of the green candle is where the price opened.
The low is the lowest that the price reached in that period of time.
Conversely the top of the "wick" was the highest point. The top of the body of the candle is where the price closed. A red candle is exactly the opposite.

Therefore a green candle can be said to be a bullish candle ( a bull market is when the price is going up) & a red is a bearish candle (going down). Gosh this is so easy. Right ?!I was searching the internet and came across this video that explains better than I can the main candle patterns.

Six of the most well known candle patterns & their significance; Those included are: » Spinning Top » Doji » Bearish Engulfing Pattern » Bullish Engulfing Pattern » Dark Cloud Cover » Piercing Pattern » Bearish Harame » Bullish Harame » Hammer » Hanging Man » Morning Star.

The guys accent on this video is amazing. The best guess I have is a cross between Welsh & West Indian ! BUt the content is brilliant and explained very simply;

forex candle examples