How to Read Forex Candlestick Chart

There are 3 major points in candlestick ( open, close and tails )that are used in the make of a candlestick price. The first things we have to understand are the candlestick open and close price. Open and close price determine where price start and ended for a time period and will build the body of candlestick. It is very important to know the color of the candlestick body. Knowing this color, candlesticks can assists us determine if the forex market is moving higher or lower for a certain period. Tails or wicks can also referred to as a shadow. These point are crucial as they show the extremes in market price for a certain charting period. The tails are identifiable as the power of the candlesticks becomes apparent. Forex candlestick can assist up maintain our eye on Forex market momentum and away from the static of extremes price. Once we can read the Forex candlestick , they can open of trading chances. While Forex trader may not use Forex candlestick analysis alone in their Forex trading system it can bring us clues into Forex trading sentiment and trend direction.