Education Lesson 23
Candlesticks show that emotion by visually representing the size of price moves with different colors. Traders use the candlesticks to make trading decisions based on regularly occurring patterns that help forecast the short-term direction of the price.
Candlestick Components Just like a bar chart, a daily candlestick shows the market's open, high, low, and close price for the day. The candlestick has a wide part, which is called the "real body."
This real body represents the price range between the open and close of that day's trading. When the real body is filled in or black, it means the close was lower than the open. If the real body is empty, it means the close was higher than the open.
Traders can alter these colors in their trading platform. For example, a down candle is often shaded red instead of black, and up candles are often shaded green instead of white.
Please see this website for in depth training
The best candlestick patterns to profit in forex and indices - For Beginners
Here's another video on candle stick patterns
Those were traditional candles you've just watched. Theres another type of candle stick pattern. It's called Heikin ashi. It's a Japanese candle pattern. Please watch this video
There a whole strategy involves with this. Please check out the website. Theres extensive information on how to trade with this strategy.
Here is the difference between Heiken Ashi candles and Regular candles