Financial trading candlesticks
Forex Candlesticks are a visual representation of price action in the forex market. Forex candlesticks consist of two main components,
the body, and the shadow. The body consists
of open, high, low, close, and volume bars. The shadow consists of the opening, closing, and wick (or sloping line) of the candlestick.
The body of the candlestick represents the current price movement of the currency pair being traded. The open bar represents the beginning of the trading session, while the close bar represents the end of the trading session. The high bar represents the highest point of the day's trading session, while the low bar represents the lowest point of the day's trade. The volume bar shows how much money was traded at any given time during the trading session.
The shadow of the candlestick shows the direction of the trend of the currency pair over the course of the trading session. If the candle closes higher than its opening, then we say that the currency pair is trending upward. If the candle opens lower than its closing, then we say that it is trending downward.
A rising trendline is represented by a positive slope. A falling trendline is represented by a negative slope. When the slope of the trendline is 0, then we have a flat trendline.