JAPANESE CANDLESTICKS – TECHNICAL ANALYSIS TOOL FOR FOREX TRADING
Japanese candlesticks are the oldest analysis tools for forex trading. The Japanese candlestick charts were prepared in eighteenth century by a person called Munehisa Homma. He designed candlestick charts for analyzing the changes in prices of rice contracts. He used to trade these contracts for good rates and was a successful trader at his time. He became very wealthy for using candlestick charts.
Candlestick charts are easiest ways for showing the price movements in the forex market. The forex charts are simple as well as powerful and can be used very effectively to find the variation of prices. The candlestick charts are easy to read and understand. They contain a body and may or may not have a wick at every point. The body will show the opening price at one point and closing price in other end.
The wicks will show the movement of the price below or above the close. The body color will exhibit whether it was down period or up time period. The candlestick charts are very easy to use and can we can tell with help of easy look, whether the price was closed lower or higher than previous open. Though these things are along enough for justify the use of candle stick charts with more preference than line charts. Read more »