| When learning how to trade currency, it is important | | | | for a while. Black candles on the other hand, indicates |
| to learn how to use the tools. One of the essential | | | | a downtrend (bearish market). |
| tool of making trading decisions is the Candlestick | | | | Long lower shadow (the lines under the body are of |
| chart. The chart is a combination of bar and line | | | | the length of the body or longer) indicate bullish |
| charts, that depicts price movement over time. It is | | | | market, while long upper shadow indicates bearish |
| the key tool of technical market analysis, used to | | | | market. This also indicates that the price has a |
| determine price movement patterns. | | | | tendency to go in a certain direction. |
| Candlestick chart consists of bars and lines that make | | | | When the opening and closing prices are equal, a |
| so called "candles". The body of a candle marks open | | | | candlestick makes a Doji which indicates a neutral |
| and closing price in the interval, while the lines mark | | | | market. If a doji has no upper shadow, it's called a |
| high and low price in the interval. The lines are also | | | | Dragonfly doji and it indicates trend reversal. Same |
| called upper and lower shadow. If the market opened | | | | way if a doji has no lower shadow, it's called a |
| at a higher price than it closed, the body is black, if | | | | Gravestone doji and it also indicates trend reversal. |
| the market opened lower - it's white. It is common | | | | Spinning top is called a short candlestick among long |
| to use different color candles, such as blue and | | | | ones. It indicates a possible trend reversal. The |
| white, green and white, or green and red. | | | | meaning of such a candlestick is that after a |
| The sets of candles form price movement patterns, | | | | downtrend or uptrend the market has become |
| by which predictions of future price movement can | | | | indecisive, and more often than not, that means |
| be made. There are many of these patterns, from | | | | trend reversal. |
| very simple to complicated. Below I will describe a | | | | Those are just a few patterns but they are the |
| few basic patterns. | | | | fundamental patterns from which derive more |
| White candlesticks indicates uptrend (or bullish | | | | complex analysis. However, they alone are enough to |
| market). If white candles are dominant in a certain | | | | make the basic trading decisions. |
| period of time, it is likely that the trend will continue | | | | |