What are traditional Christmas decorations?

Answer 1

The Christmas tree is usually decorated with candles (some people use real ones, but usually electric lights are used), tinsel and ball ornaments. Gold, silver and red are colours that are often used, generally the tree is much less colourful that Christmas trees in the US for example.
Many people have a nativity set, under the tree or somewhere else in the house. Christmas decorations made in the Erzgebirge are very popular, the people there have a long tradition of making such decorations and toys from wood. You will find a Christmas pyramid in many homes, a kind of small wooden carousel with several levels that usually shows the Holy Family in the middle and the shepherds/three magi revolving around them, driven by the heat from the candles placed around the pyramid.
Nutcrackers in the form of soldiers
http://de.wikipedia.org/w/index.php?title=Datei:Nussknacker.jpg&filetimestamp=20050729171449
and Raeuchermaennchen are also common. Raeuchermaennchen are wooden figurines that are hollow and you can place a piece of incense inside. While the incense burns down, it looks like the figurine is puffing out smoke.
http://en.wikipedia.org/wiki/File:R%C3%A4ucherm%C3%A4nnchen.jpg

There are many different traditions, so keep in mind that this is by no means a complete list and that people may do things differently depending on where in Germany the live.

Answer 2

Wreaths, Christmas trees decorated with ornaments and tinsel and the good old Christmas tree with ball ball

Answer 3

with candles