Candlestick patterns are the oldest Forex analyzing tools, developed by Japanese in the eighteenth century with the object to follow the rice sell.
They used to draw the bars representing the trade of each day, mentioning the opening, highs, lows and closing rice trades.
They color the distance between the opening and closing of trade in a rectangle shape, so that each trading bar would look like a candle that is how it got the name candlestick patterns as we call it today.
With this idea, an image might have formed in your mind somewhat resembling the candles. The technique is still valuable after centuries and move toward to the western world at the start of the 20th century.
They used to draw the bars representing the trade of each day, mentioning the opening, highs, lows and closing rice trades.
They color the distance between the opening and closing of trade in a rectangle shape, so that each trading bar would look like a candle that is how it got the name candlestick patterns as we call it today.
With this idea, an image might have formed in your mind somewhat resembling the candles. The technique is still valuable after centuries and move toward to the western world at the start of the 20th century.
Now, it has reached to a point where most of the trading systems offer candlestick chart patterns for examining Forex trends.
To note, each candlestick bar that has the final price greater than the opening price is colored with lighter color to make the difference while the dark color candles symbolize bars where the opening trade is higher than the closing trade represented by the red color.Now a-days, the Forex trading systems provides the color customization facility so that you can change color of the candlestick charts as per your likings.
The candlestick pattern is the oldest Forex analysis tool that has gained the attention of several traders and widely implemented tool in today's Forex trading environment.