Review of Forex Candlesticks Made Easy
If the question was what do candlesticks have to do with Forex trading the answer would have to be, quite a lot! In what has to be a classic example of in-house technology, candlesticks in Forex are not these long narrow things that we used to hold candles; instead it is a form of charting that, when properly analyzed and astutely acted upon, will light the path to unlimited financial success. Sounds that we have entered into the world of fantasy? We might well have. However the facts show that traders who have studied the candlesticks theory have done well but those who take the path of the candlesticks really need to know what they are doing.
First of all it is important to understand the basics of the theory of candlesticks. Candlesticks comes in pairs and in the case of Forex candlesticks, they don’t exactly match. The first one is bearish, usually red, but always a prime color, while the second is either green or transparent. The bearish candlestick represents a single currency that has closed below its opening price, while the bullish candlestick is the one of a pair that has closed above its opening price. As is the case with all candlesticks, when the flame is lit, shadows will be set. These shadows are known in Forex trading as “wicks”, and they appear above and below the candlestick body. Their role in Forex candlesticks charts is to denote the price ranges set by the currency pair during a set time period.
Forex candlesticks are the brainchild of Christopher Lee, not he who appeared in various Dracula films in the 1960s, but instead a Forex trader who spent several years dealing in foreign currencies and several more writing and explaining his theories in his book “Forex Candlesticks Made Easy”. This easy to follow e-book explains how to interpret all the candlesticks information gathered. So you needn’t be in the dark for too much longer.
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