Candles Forex analysis is done on candlestick charts and is very similar to that of stocks and other online securities trading. We look at candles shapes to get a feeling about market sentiment.
Adding a little bit of romance to your life is always good, and candles are known for creating a romantic atmosphere. Many people use candles not only for romance, but also for celebrations, for spiritual purposes, or just for relaxing. If you are a candle lover, then you know you are on the right track in your decision to learn and trade forex, because all the forex parties are filled with candles!
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We talked about the formation of candles briefly in Chapter 10 my book, Invest Diva’s Guide to Making Money in Forex. Just like the real candles that you have in your home, forex candles come in all different sizes and shapes, but this is not just for the sake of romance. Each shape and color has a deep meaning behind it as well. What is more romantic than gazing at candles, analyzing their shapes and patterns, and understanding what they are trying to tell us?
As you can see, forex takes the deepness and beauty of candles to a whole new level.
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Long and Short Candles Forex
Forex parties are filled with candles with bodies and shadows (that is, wicks) of different sizes.
Candles forex of different sizes indicate different trading pressures. As we said before, we can set our trading platforms to build candles in different time-frames. The color of the candle tells us, whether the price of the currency pair is generally going up, or going down in that specific time-frame. The height of the candle, shows us how intensely the pair was forced to move by the forex puppet master.
The longer the candle, the higher the trading pressure. Forex Diva likes to set the color of bullish candles to green,, and bearish candles to purple.
- Question: What does a long green candle have to tell us on a forex trading platform?
- Answer: The green color indicates that the price generally went up during the given time frame. The length of the candle means that the price went up big time!
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Related:
- Candle Charts – Technical Analysis with Candlesticks
- Trend Changing Candle Arrangements
- Basic Candle Shapes in Technical Analysis
- Ichimoku Kinko Hyo- What’s Best Time Frame to Use it?
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- Bullish Reversal Candle Arrangements
- Forex Patterns – Basics of Technical Charting
- Triangles – Technical Chart Patterns
- Continuation Patterns List
- Online Risk Management for Traders & Investors
- Day Trading Strategy for Beginners
