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Related terms
An analysis of price going down. When a trader is bearish on a pair, they think the market will be heading down. A trader is a bear in the market when placing or holding short positions.
An analysis of price going up. When a trader is bearish on a pair, they think the market will be heading up. A trader is a bull in the market when placing or holding long positions.
A trader placing a long position on a trade.
A chart consisting of vertical bars (candles). Those candles will tell you the highest and lowest point price went to and the open and close. The wick of the candle will show the highest and lowest point price reached during that time frame, and the body will show where price opened and closed. If the CLOSE price is higher than the open price, price went up. If the close price is LOWER than the open price, price went down.
How fast something can be bought & sold for and how fast it can be converted into cash. A liquid market is a calculation of how many buyers and sellers are in the market actively placing trades. The more trades that are being taken, the higher the liquidity is in the market.
To sell or have sold a currency pair.
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BeginnerEarly Stages for Beginners8 Topics
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Forex Terminology11 Topics
- Major and Minor Currency Pairs
- Basic Forex Terminology
- Pips & Ticks
- The Broker & The Spread
- What is a Lot?
- Stop Loss & Take Profit
- Margin & Leverage
- Retracement & Reversal
- When Can I Trade Forex? Sessions - Market Open and Close
- 3 Types of Analysis (Technical, Fundamental, Sentiment)
- 3 Ways a Market Can Go (Up, Down, Sideways)
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Margin & Leverage2 Topics
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IntermediateIdentifying Scams2 Topics
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Brokers for Beginners5 Topics
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Technical Analysis13 Topics
- Types of Charts
- Understanding Japanese Candlesticks
- Candlestick Patterns For Beginners
- Single, Double & Triple Candlestick Patterns
- Support and Resistance
- Confluences w/ Candlesticks & Support & Resistance
- Trendlines
- Counter Trend Trading/ Counter Trend Lines
- Fibonacci
- Moving Average
- Top-Down Analysis
- Fakeouts
- Consolidation Trading (Breakout, Retest, Continuation)
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AdvancedUsing Indicators6 Topics
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Technical Analysis (Part 2)8 Topics
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Market Structure5 Topics
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Fundamental Analysis9 Topics
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CompletionRisk Management for Beginners8 Topics
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Psychology for Beginners7 Topics
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Personal Psychology Questions2 Topics
Understanding Japanese Candlesticks
One of the most important things you’ll learn when it comes to this market is a Japanese candlestick. One simple candlestick can help shape your bias with the overall market direction.
When looking at charts, you can view the market in three different ways: bars, lines, and candlesticks. You can of course use a bar or line chart when trying to learn how to day trade; however, candlesticks are the most commonly used due to the charts being easier to read, and it gives you a clear visualization of how the market is moving.
With Japanese Candlesticks, each candlestick represents a time frame of your choice. Say you are on the 1-hour time frame – that would mean each candle on the chart represents 1 hour in the market. The body of a candle represents where price opened and closed. The wick of a candle represents where price reached its highest or lowest point during that time frame/within that hour.
Candlesticks can come in all different sizes! That helps us as traders figure out what price is doing during the time frame you’re analyzing. If the candlesticks are short, there is very low liquidity in the market at that time. If the candlesticks are long, the market is super liquid.
There are two types of candlesticks; one being bullish (up), the other being bearish (down).
If price closed higher than what it opened at, then it would be considered a blue or green bullish candle (or whatever color that describes going UP for you). If price closed lower than what it opened at, you will notice a red bearish candle.
