The Forex Education Academy provides all the information you need to start trading Forex. If you are new to Forex, these lessons will show you what you need to know to start trading Forex. Why waste your time learning one hundred useless lessons, when you only need to reading forex charts basics twenty useful lessons to trade successfully? Your time is valuable, so I designed these lessons to teach you Forex basics as quickly and efficiently as possible.
I show you Candlestick Analysis Basics. The lessons in this section are vital if you want to learn Price Action trading. The Forex Education Academy is split into three sections. If you already know all the basics, the Forex education section is not for you. You should move on over to the free Forex course and learn how to put together the perfect trading and money management plan.
Candlestick charts have enjoyed continued use among traders because of the wide range of trading information they offer, along with a design that makes them easy to read and interpret. The chart received its name because its markers, or indicators, have a body shaped like a candle, with a line on top that resembles a wick. These candles also have a “wick” on the bottom end as well. On the chart, each candlestick includes an open, high, low and close price for the time frame. The trader sets the time frame of each candle. Every five minutes a new candlestick is created, and it takes five minutes to complete before another one begins. Candlesticks also show the current price, whether the price moved up or down over the time frame, and the price range the asset covered in that time.
If a price trends up, it has a green candlestick, and downward-trending price candlesticks turn red. The color changes depending on whether the price sits above, in green, or below, in red, the open price during the time frame of the candlestick. If the open was the highest price during the time frame then there will be no upper tail. If the open was the lowest price during the time frame, then there will be no lower tail. Again, the upward candlesticks show as green, and the downward candlesticks show as red. While a candle forms but before it completes, it constantly changes as the price moves.
The open stays the same, but until the candle completes, the high, low and close could all change. The color may also change while a candlestick forms. It may go from green to red, for example, if the current price is above the open price, but then drops below it. When the time frame for the candle ends, the last price is the closing price, and then the candle can no longer change. A new bar forms to show how the price moves over the next time segment.