Japanese Candlesticks in Forex Charts

Do trading forex and Japanese candlesticks have something in common? Actually they do.

Seven centuries past in Japan, multitudes of rice traders utilized candle charts to keep track of rice prices.

They are very popular due to the fact that people generally have an easier time reading candle forex charts compared to the run of the mill bar charts. Japanese candlesticks comprise the majority of the charts on foreign exchange seen today.

Low and high prices as well as the open and close are used to form candle forex charts.

A hollow candle drawn in white or green indicates a price closing higher than the opening price.

A filled candle drawn in black or red would indicate a price closing lower than the opening price.

The green/red colors are preferred to the traditional white/black by a majority of online brokers. Thus newbies can use Japanese candlesticks see the trends rapidly because the red candles show price decreases while the green candles show price increase.

Here are a couple of online brokers that you can create accounts with free of charge to get some experience with different trading platforms.  To start with you can use their demo accounts to try it all out without risking real money:

1. Forexyard trading platform

2. Easy Forex Trading System