Please assist me I cant understand the Japanese candlesticks
Checkout the Babypips school lessons in the navigation bar at the top of the site page. All is explained there.
Candlesticks are one of the many methods we have to interpret movements in price.
They can never be used in isolation though- you’ll do nothing but drain your trading account if you take this approach.
I think the real problem lies in how to read candlesticks ,for the definition it exactly as how Forexunlimited explained they are a way of showing information on a price chart over a set period of time.Now on how to read it ,Conditioned on the time frame of the chart, each candle represents a time period of a specific length,
Example: on a 5 minute candlestick chart, each candle represents a five minute period. On a 1 hour candlestick chart, each candle represents a one hour period. So If you set your Japanese candlestick chart to a 1 hour time period, then each individual candle will form over 1 hour same if the chart is set to a 5 minute time period, then each candle will take 5 minutes to form.As you see them on the chart they are rectangular bodies with a line on both the top and bottom called wicks,each of the candlestick shows an opening price (the price at the beginning of the time period), closing price (the price at the end of the time period) , highest price reached during that period and lastly lowest price reached during that period.My last point would be the different colors of the individual candlesticks they are help us to tell if the candlestick is bullish or bearish and can be set to any color by yourself.Bear in mind that candlesticks are bullish if the closing price was higher than the opening price) or bearish if he closing price was lower than the opening price. All the best Buddy 