There are many types of charts including line charts bar charts and renko charts but due to the information a candlesstick chart can provide it is the most popular chart when trading forex. This is because candlestick charts show more information then other charts, when looking at a candlestick chart you can instantly see the open, close, low and high of each session. Due to the candlesticks movements you can use them to trade high probability candlestick patters which can consist of a number of candles and in a wider outlook can produce chart patterns such as flag patters, head and shoulders patterns and wedge patterns which are a valuable tool to use when trading.
What is a candlestick?
Each candlestick represents each individual session, e.g. when on the daily chart each candle is a day and when on the hourly chart each candle is an hour ect. The candle will show the open of the session, the low, high and close. There are two types of candles, bullish and bearish.
When a bullish candlestick has formed the opening price is the bottom of the main body, the close price is the high of the main body, the low of the session is the bottom of the wick and the high of the session is the top of the wick, the main body will also be white or green showing it was a bullish candle.
When a bearish candlestick has formed the opening price is the top of the main body, the close price is the low of the main body, the low of the session is the bottom of the wick and the high of the session is the top of the wick, the main body will also be black or red showing it was a bullish candle.