The origins of the Forex candlestick can be traced all the way back to Japan, which is quite fascinating. Candlestick charts can be traced back as far as 500 years. Japanese traders use it to analyze the price of rice on the market.
Of course, techniques have progressed and evolved, and candlesticks are now used by a large number of traders all over the world. You now know how and where the famous candlestick was created.
It was only 25 years ago that the western world approved of Japanese candlestick charts. It gradually gained traction in the American trading community. It wasn’t as well known before because mastering the Japanese candlestick technique was thought to be difficult and complex. Candlesticks are the purest form of Price Action, allowing us to see what’s going on in the market. The signals on a candle chart are identical to those on a bar graph. Candle charts, on the other hand, are more visual and more reliable.
Candlestick patterns are a price pattern that repeats itself and predicts future prices. They will also channelize your market-thinking process.
In this lesson, the patterns show us how traders acted previously and what their beliefs were at the time.
Usually, candlestick traders communicate using “Candle slang.” Candlesticks are the foundation of your trading and thinking processes. It’s worth noting that attempting to identify candlestick patterns without a trend, Support, or Resistance is futile.
Bullish and Bearish candlestick patterns number in the hundreds.
While some traders can recall all of the names, this is unnecessary because each Candle tells a different and unique story that will provide you with new information to consider.
When looking at charts, it’s critical to ask yourself questions that can support your current viewpoint.
For instance, what does it mean for you if the recent Candle has a solid form? Does it support or contradict your previous beliefs about the candlesticks?