Nowadays everybody faces the concept of Forex currency market. Recently, such concepts as currency pair, analytics, Forex candles, day and tick charts were known and understood to the close circle of people, working at Forex currency market. Today, the advertisement about Forex can be met everywhere: on the radio, TV, the Internet, huge outside banners. They all propose opening trading accounts with one Forex company or another.

In addition, opening account, starting with $1, is offered. We can meet brokers and dealing centers, analytical reviews, and the profitable strategy is only for $5.

Due to active advertising and promotion, now most everybody knows about Forex, and everyone, wishing to get easy money, enters the market, thinking that he is ready for trading on Forex. Learning basics of technical and fundamental analysis, knowing about the Elliott waves and trying to estimate a trend reversal on the moving average, few of the currency trading beginners pay attention to one of the methods of graphic analytics – Forex candles.

It is absolutely natural that every trader uses not only Forex candles in trading. There are three graphic indicators of price and its forecast:

– bars

– lines

– Japanese candles

Often, “Japanese candles” are called Forex candles and they are considered the most indicative and efficient in trading among experienced Forex traders. And, the beginner should give special priority to Forex candles.

The graphic analysis was found about 300 years ago in Japan, and it got this name as for more demonstrative example of price movements and the difference between opening and closing figures,ordinary candles were simply laid on a table in the Middle Ages.

The core meaning of using Forex candles is in the following: if the close price is higher then the open price, a Forex candle is white; and if the close price is lower than the open price, then correspondingly, the candle is black. Thus, having analyzed the positions of black and white Forex candles and the derivated from them groups, it is possible to forecast the direction of the trend in the nearest future with a large percentage of certainty.

Added by Denis Minenkov,
InstaForex Clients’ relationship manager