ForexGen | Candlestick Chart Terms

Candlestick chart patterns are very popular in forex trading because they are the main part of technical analysis. On all chart modules, users can toggle between line, bar and candlestick chart view.

The candle consists of two parts: the body and the shadows. The body reflects the open and closing price for the certain period.

The candle body is black if the close price below the open, and white if the close was higher than the open for the period.

The candlestick shadow reflects the intra-period high and low prices.

(Note: In candlestick charting the following periods are often used; 5 min, 15 min, 1 hour, daily and weekly).

Long shadows, show that the trading extended well beyond the opening and/or closing price, while short shadows, show that trading was confined closely to the open and/or closing price.