http://www.theforexnittygritty.com/forex-training/japanese-candlestick-forex-charts Japanese Candlestick Forex Charts

2. Technical Forex traders follow charts to
keep track of foreign currency prices.

3. Commonly the best currencies to trade in
Forex are the most volatile.

4. Japanese candlestick Forex charts provide
traders with two kinds of information.

5. One can see at a glance if one currency pair
is more volatile than other. And one can use
the live Forex signals superimposed on
Japanese candlestick Forex charts to
anticipate profitable trends and reversals.

6. Thus Japanese candlestick Forex charts
help traders pick the most profitable to pair
to trade and they help traders profit in day to
day trading.

7. After all, the point of charting is to be able to
identify market movements and trends and
anticipate the next move of the market.

8. Japanese candlesticks Forex charts are an
ideal way to see the future and profit
thereby.

9. But first just what are candlesticks?

10. Japanese
Candlestick
Signals

11. In Japan when there were still Samurai in
charge traders traded rice.

12. These traders kept track of day to day
market prices and did this for years.

13. At one point or another some traders
realized that price patterns for rice repeated
themselves.

14. It was possible to trade rice and make
money without really watching the supply
and demand factors that eventually set the
price.

15. They recorded the opening and closing
price of the day and the range of price for
the day.

16. Then they did this for every day.

17. The opening and closing price of the day
was represented by a rectangle.

18. It was clear or colored white if the day
ended higher than it opened and black if it
closed down.

19. The rectangle had lines extending above
and below to represent the range of trading
for the day.

20. The length of the lines and the rectangle
were proportionate to the price movement of
the day.

21. These signals looked like candles with
wicks on each end.

22. The rectangle was called the candle and the
lines were called shadows.

23. These symbols were superimposed on a
line graph that also displayed end of day
market pricing.

24. Yesterday Rice,
Today Japanese
Candlestick Forex
Charts

25. What rice traders in ancient Japan learned
is that often times the market tells us by its
pricing patterns just what it will do next.

26. In essence the signals on Japanese
candlestick Forex charts, or commodity
charts, or stock charts are the first half of a
pattern and ensuing price action is the
second part.

27. Because history repeats itself one can learn
to read the signals in Japanese candlestick
Forex charts and predict whether price
action will go up or down.

28. It makes no difference if one is trading rice,
stocks, or Forex provided that the market is
large enough and has enough daily volume
to make statistical analysis practical.

29. Because of the huge size of the Forex
market, it is an ideal place to use Japanese
candlestick Forex charts.

30. When learning the basics of Forex, traders
are wise to learn a clear and easy to use
technical analysis system such as Japanese
candlestick Forex charts.