Econ Info

Not many people know about the Candlestick chars of Forex trading.  They began back in the 1700s and are the oldest charts used today for price predictions.  Back then, the price of rice was predicted by a legendary rice trader and using the Candlestick Charts and today they are still used.  Because these chats are so dynamic and versatile, they remain popular in Forex trading.

These are not like the typical charts as these are colorful and each color will define a price movement. Price movements are defined as either open, close, high or low as these are of the most importance to investors.  Each candle body is made up of two parts: the shadow and the body with each period shown by the open and closing price.

The body can go from black to white as these colors will stand for different prices.  The intra-period is seen in the shadow and tells of the high and low and the amount of time that has passed.  This time can be seen by the week, day, hours or by the minute.  These charts are not hard to read and can tell in what direction the trade is going.   It is also possible to see its strength and other technical indicators can be combined with it.

Tags: forex