Japanese Candlesticks

What do Japanese candlesticks have to do with trading
forex? A whole lot.

Originally created in Japan (as the name implies)
several centuries ago to trade rice, candle charts
are used by thousands of traders to track price
movement.

Most people find candle charts much easier to read
than standard bar charts, and they have become
incredibly popular. Most forex charts you see are
japanese candlesticks.

Candle charts are formed using the opening and closing
prices, as well as the high and the low.

If the price closes higher than it opened, a hollow candle
is drawn (usually drawn in white or green in color).

If the price closes lower than it opened, a filled candle
is drawn (usually drawn in black or red in color).

Most online brokers I've seen use the green/red color scheme
rather than the more traditional white/black. Trends are
easily spotted even by newcomers as green candles signify
price increases while red indicates price decreases.