Candlestick Forex Signals

The candlestick is an important component of any price chart. A candlestick generally has one body and two shadows. Shadows are optional in all candlestick patterns.

There are two types of candlesticks: one is bullish and the other is bearish.

The open and close prices are displayed on every candlestick's body. Bullish candles have an open price that is lower than the close price. This means that the closed price is higher than the open price.

The Close price for bearish candles is, however, lower than the open prices.

You can tell the difference between bullish candles and bearish candles by their different colors.

The bullish candles are usually displayed in green and yellow colors. On the other side, the bearish candles can be displayed in different colors in black or in red.

The bullish candle's upper shadows indicate the highest price. Lower shadows indicate the lowest price.

This is the basic anatomy of a candlestick pattern. This is how candlesticks make different patterns and shapes. Each pattern and shape has its own signals and price direction. Candlesticks are a great indicator to tell traders what to do.

Professional traders use and adhere to the rules of candlestick patterns.

Doji

The Doji candlestick is formed when the market prices open and close are almost equal. Doji candlesticks look like a Cross or Inverted cross, or a plus sign.

Doji candlestick is used to indicate that bulls or buyers are equal, bears and sellers have equal mached and neither one is stronger than the other.

so doji means indecision. Doji formation means that the trend can continue, reverse or move sideways. If we hold any position in the market, it is best to exit.

We will examine how many doji candles are displayed on any daily market price chart. All of them served as reversal signals. The price moved on its own after many other signals or remained sideways for a long time.

The price went sideways due to doji. It was reversed by doji.