FOREX charts are easy to interpret, especially for someone that has invested in or day traded stocks before.
Charts are the building blocks of major analysis ways which are probably the most popular and successful ways of trying to understand the market.
Currency charts are really no different than stock market charts.
One of the advantages of trading currencies over stocks is that you only have a few major currencies to trade rather than ten thousands of stocks, in several markets. Thus, it is a lot simpler.
Japanese candle sticks are the most animated way to observe price movement. It records the price movement on charts in effect drawing a clear picture for traders to study.
Japanese candle sticks also known as sign language of the market.
In candlestick charts, as in many other charts, you get the open, close, high and low of the online FOREX prices.
One of the biggest advantages of candlestick charts is when you only take a glance; you can observe a lot of information about the online FOREX currency movement.
Most importantly, you can notice the difference between the open and close prices of the online currencies.
If you notice a red candlestick, it can serve as a warning about the direction of the currency price.
The fat red section is the body of that candlestick. The lines protruding from the top and bottom are the upper and lower wicks. The very top of a candles wick is the highest price for that candle while the bottom of the wick is the lowest price for the candle.
