Candlestick Charts Tips

Few tips for candlestick charts and their interpretation in the
forex market can be:

1. A Black Candlestick -- when the close is lower than the open.
2. A White Candlestick -- when the close is higher than the open.
3. A Shaven Head -- a candlestick with no upper shadow.
4. A Shaven Bottom -- a candlestick with no lower shadow.
5. A Spinning Tops -- an equilibrium between the bulls and the bears (either white or black).
6. A Doji Line - a very close Open and Close?doj.


Some of the benefits of candlesticks in forex are:
1. Ease of reading - as the charts are composed of four price readings: open, high, low, close

2. Not only shows the direction of a trend, also shows the strength of a move in a particular time frame.
3. Can be used in conjunction with other technical indicators.

4. Provides the earlier reversal signals.