Japanese candles Is one of the most famous technical analysis methods in the Forex market. The beginning of the Japanese candles came in the eighteenth century and there was a large turnout from the merchants to this day. The name of the Japanese candlestick came from its shape on the chart, where the chart is represented in a candle-like manner. The Japanese candlestick chart clearly reflects the relationship between the opening and closing price, as well as the highest and lowest price reached by the pair within a certain period of time.
The lower horizontal line represents the opening price, while the upper horizontal line represents the closing price. Top and bottom horizontal lines display the highest and lowest price during the time period. According to the direction of the movement of the price of the currency, the body of the candle takes a certain color, usually black or white.