Trading on the market that deals with currency pairs can be quite lucrative, and retail investors are taking notice. Similar to trading on other markets, you should have a good understanding of technical analysis and utilize that knowledge to your advantage. Candlesticks are one of the most useful parameters that enable you to spot price movements and developing patterns early on, which should lead to maximized profits. They are superiors to standard charts and are more likely to give you signals that are not fake.
- A green or white candle body indicates a higher closing than opening price, while red or black denotes the opposite.
- The Doji pattern has a dash rather than a body because the opening and closing prices are the same.
- There are single candle patterns (e.g., the Hammer) as well as double and triple patterns.
“Candlestick graphs give twice as much information as a standard line chart.”