Japanese Forex candlesticks explained
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Japanese candlesticks are viewed as the most effective representations of price movement in any market, especially the Forex market. Traditionally, traders used bar charts, which consisted of a centre line representing the session's highs and lows, and two horizontal lines that show the open (left line) and the close (right line). As bar charts are all in single colour and their construction took time to analyse, it can be difficult or time consuming to use them in day to day trading, especially if a trader is using lower time frames.
The introduction of candlesticks made the whole process a lot easier. By filling in the gap between the session's highs and lows with a colour, traders literally take milliseconds to analyse a trading session. White or green candles confirm the session is positive (with a close above the open) and black or red candles confirm the session is negative (with a close below the open). This simple face lift has transformed the way that traders interpret markets prices and movement.