Similar to a bar chart, but instead uses candlestick shapes to represent the open, high, low, and closing prices of each currency pair.
• Learning how to read Candlestick charts is useful for identifying price patterns and trends and can also provide more information than line or bar charts.
To read forex candlestick charts effectively, analysts focus on the body and wicks of each candle. The body represents the price range between the opening and closing prices, while the wicks, also known as shadows, illustrate the highest and lowest prices reached during a specific time frame. By observing the patterns formed by candlestick bodies and wicks, analysts can identify trends, support and resistance levels, and potential trading opportunities.