Candlestick in Forex World also used as technical indicator, it is a graphic presentation of data on a price for a specified period (usually daily). Candles display the open, high, low and close for the period and the use of green to red and periods for periods down. Candlestick charts are an improved version of bar charts. It is Forex most popular and widely used chart type.

Candlestick technique originated in Japan when Munehisa Homma of Dojima Rice Exchange used past prices to predict future price movements and generated an enormous amount of wealth. The concept was adopted to analyze the Forex market which later proved to be extremely effective.

The Candlestick turns hollow (white or green in some cases) when the close is higher than the open price. A stuffed (black or red) Leuchter is seen when the open is higher than the close. The body (either full or hollowed) of Candlestick is the difference between the price of opening and closing price, whether the shadows, the lines are thin at the top and at the bottom of the candle stick, give the information about the trading range during the candle-stick Period. The upper shadow ends at the level show the high prices for the period and lower ends of the shadows on the level of the low price.