How to Read Forex Charts – Candlesticks for Beginners

Reading forex charts is one of the most essential skills for any trader. If you want to confidently understand market movement and price action, learning candlestick patterns is your first big step. This guide will break down the basics of forex candlesticks in a simple and visual way.

1. What Are Forex Candlesticks?

Candlesticks are a type of price chart used in technical analysis that displays the high, low, open, and close prices for a given period. Each candle shows a battle between buyers and sellers.

• Body: Represents the open-to-close range.
• Wick/Shadows: Show highs and lows of the session.
• Color: Bullish candles (green or white) = price rose. Bearish candles (red or black) = price dropped.

2. How to Interpret Candlestick Patterns

Candlestick formations give traders clues about market psychology and possible price movement. Some popular beginner-friendly patterns include:

• Doji: Indicates indecision, potential reversal.
• Hammer: Bullish reversal after downtrend.
• Engulfing: Reversal pattern where one candle ‘engulfs’ the previous one.
• Shooting Star: Bearish reversal after uptrend.

3. Timeframes & Strategy for Beginners

Start with higher timeframes (like 1H, 4H, or Daily) to understand the big picture. Use candlestick patterns to confirm trends, reversals, or continuation setups.

Combine candlestick knowledge with support/resistance levels and indicators like RSI or Bollinger Bands for better accuracy.