Candlestick is a very popular visual charting used in forex trading both in autotrading and manual trading. Candlestick charting can be apply on various time frame and is a good indicator of the currency price movement.There are 4 importance price indicated on every candlestick (you can also call it as bar) on the selected timeframe. If your chart is 15 minutes then your candlestick will be form every 15 minutes. It will take the open price, close price, high price and low price for that 15 minutes bar.
Attached a photo of the candlestick. It show clearly the open price, close price, high (highest) price and low (lowest) price for every 15 minutes block (or which ever timeframe chart you selected). If the bar block is black it show higher open price compare to close price, or commonly called bullish candle. If the bar block is white it shows that open price is lower then close price, also call bearish candle.
1) Multiple time frame.
You can start at large timeframe of 1 hour or 4 hour. The candle stick is bullish. Then zoom into 5 minutes or 15minutes time frame. The candle stick is also bullish. You have a strong up trend to place a buy order.
2) Consecutive candlestick
For 6 consecutive candlestick if all bullish candle, you have a strong up trend. If you using 1 hour chart, then it means 6 hours of up trend to potentially place a buy order
3) Small body candlestick
If there is consistently small body and short open and short close candles, its show sign of breakout which is potentially trending up/down after that. Order can be placed respectively if it break high price (buy order) or drop low price (sell order).
There are many ways to interpret and above are just some example of using candlestick to pick up trend for forex.
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