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.
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
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.