How do you Interpret candlesticks in forex trading?

Answer 1

There are two different parts of a candle stick, the body which is the thick part of candlestick and there is the wicks the thin part of a candlestick.

There are two different types of candlesticks, a bullish (price moving up) candlestick:

1. The top of the upper wick is the highest point price reached during a particular timeframe.
2. The bottom of the lower wick is the lowest point price reached during a particular timeframe.
3. The top of the body is the closing price during a particular timeframe.
4. The bottom of the body is the opening price during a particular timeframe.

And for a bearish (price moving down) candlestick:

1. The top of the upper wick is the highest point price reached during a particular timeframe.
2. The bottom of the lower wick is the lowest point price reached during a particular timeframe.
3. The top of the body is the opening price during a particular timeframe.
4. The bottom of the body is the closing price during a particular timeframe.

There is also a candle stick called a Doji, the wicks of the doji is interpreted exactly as the other candlesticks, however the opening and closing price are the same so the candlestick appears as a cross.