Hi ,
in this candle stick explanation on baby pips site
if open < close the real body is white and if close < open the real body is black.
in my meta trader 4 demo
bull candle set to black
bear candle set to white
are they the same ?
because when i see the white body in the meta trader
( ex : o : 1.0469 , h : 1.0470 L : 1.0441, c 1.0446 )
this mean Close bigger than open right ?
which one usually people use ?
and what is volume mean ?
thanks for the help 
in the metatrader u can choos the color u whant for the candlestick,i use red for bearish and green for bulish.
to choose the color u pres the right boton of the muse on the chart and choose properties,or just pres f8 the same thing.
a bearish candlestick is one that open high and close low,example:
0pen 1.3820 close 1.3800
and a bulish candlestick is the oposit:
open 1.3850 close 1.3880
Hey guys,
Was just wondering if candlesticks work the same way in forex as they work in stocks…Steve Nison mainly used then in stocks and options i believe. But if you have a look in forex “abandoned baby” and “evening star” formations are exactly the same as this market open 24/7. So how do you guys use candlesticks…
Would be great if someone could reply back!
cheers
Gagan
You’ll find they work pretty accurately in FX too gagan.
Although currency markets operate from late Sunday thru late Friday (London time), the main activity across the vast majority of pairs & crosses transacts during London & New York business hours.
Those 2 zones, particularly when they overlap, carry the hardest clout as far as volumes & liquidity are concerned.
Given the fact candlesticks are merely representative of trader psychology, if you pay attention to the key levels of supply-demand you’ll glean your fair share of trade opportunities based around common candle formations & set-ups.
Tess, i agree with what you are saying and i do use the candlesticks with other indicators while trading. I just read an article which suggested that only some of the commom candlesticks can be used in forex trading ie only the ones which do not have a price gap between them. So does that mean we donto have any significance for morning star, evening star etc…
So then would it be correct to say that candlesticks are mainly for stocks BUT THEY CAN ALSO BE USED IN FOREX?
Regards
gagan
Hmmm…well you see the only knowledge i got in the past month or so was mainly from books and internet. But just today i was surfing the net and i found this article Do Candlestick Charts Work on Forex Charts? - Forex Trading, Currency Forecast, FX Trading Signal, Forex Training Course, Education, Tutorial, FX Book, Forex ebook, Learn to Trade Forex, FX Guide, Pivot Points, Currency Rates, Forex Secret, Forex Bro
it is an interesting read if you have few moments to spare…but my main point is that even if you take the engulfing patters they are shown differently in markets that gap and in a different way in forex! and some times it does get confusing when reading the charts as there is no such book i know of which only talks about the use candlesticks in forex!
The website i found useful for candlestick patters is Japanese Candlestick Charting Explained
Regards
Gagan
To Gagan :
You have found the correct website. As you see the stock patterns and forex patterns are a little different in some cases.
Nothing to worry about. Just trade them as shown.
Of course candlesticks work in forex - they work in any type of trading. Remember what they were originally used for in Japan.
Regards, Tymen Wortel, Perth, Western Australia.
Hi Gagan,
You use them exactly the same, just disregard the gap part of it, since forex doesn’t give gaps, with a few exceptions after the weekend.
Same rules apply. You’ll find plenty of morning stars, etc… they’re just gapless
Obviously things like the abandoned baby are not going to appear in Forex since you need 2 consecutive gaps, but I wouldn’t worry too much about that.
My advice would be to simplify it a bit and choose only a few of the patterns, the most common ones and stick with them, rather than trying to find each and everyone of them, which in many occasions is like looking for the needle in a haystack.
cheers
AC
Hi Gagan,
I know you really interested in the candlestick.
At the first time i learn in forex trading is candlestick. i also following several seminars.
All of them teach interesting strategy.
But after i tried in demo account. most of the strategy that i used is failed to give me profit: candlestick, fib, advanced pattern, pattern, indicator like MA cross, ichimoku, etc.
Even all the teacher said you need to calm and discipline.
I’m calm and Discipline. I made all of the management and take picture all of my trade or journal.
But, One think I confused back there. When my seminar mentor or teacher choose a pattern. most of the time they get profit.
After a long time of strugle, I made some theory. The first thing that i need to do is how i analyse and read the chart. Then the indicator help your analysis. after indicator help your analysis. thats where the strategy came to help you make profit out of it.
This is what most of the trading course teacher did not teach us. because they want most of us keep following them. They know without analysis and able to read the chart, Most of the pattern, candlestick, etc were useless.
Sorry for the long explanation, below is the the answer about candlestick in FOREX:
If you able to indentify and Read the chart. you just need a bit time to adjust with the pace of all instruments in investment. This including equity,bonds,forex,commodity, even property. as long you have understanding how human mind and trading works. it is just demand and supply. and the chart clearly shows the direction where this people with huge investment power will go. This is the chart will shows you Not the news in Bloomberg. the news just additional knowledge for you and you know when the news is lied to you or they stated the truth.
Learn all of basic in forex: such as pattern, supply demand, elliot wave, candle stick, fib and a lot more.
To be honest, I’m just and average human. that’s why i’m spending a lot of my money to just learn the basic. and i also learn to analyse the chart everyday for the past 2 or 3 years.
It’s hard if you new - but by the times goes by, it will become more and more simple. because you trained your brain and eyes to catch the chart movement. two of them are the best indicator in this world. don’t become like me that buy all expensive and fancy like indicator. even all indicator that i used to analyse are free.
Do it Practice it with demo account first. with demo you will feel easier to practice. after couple of years you will realize it. thats why most of the trader fail. because their mentality could not hold learning forex until 3-4 years.
Good Luck and Never Give up on your Dream