Types of Forex Chart Candlesticks for Beginners
We often admire those who analyze financial market charts. Well, you’re in for a treat. Guess what? We’ll show you the different types of forex chart candlesticks — from the simple open-close-high-low variety to the more complex reversal and continuation patterns.
These little waxy wonders can tell you a lot about market sentiments, trends and of course, trading opportunities.
But first, let’s break them down into digestible bits for a clearer picture.
What Are Forex Candlesticks?
Forex candlesticks are visual representations of price movements. They’re like tiny storytellers on your chart. Each candle shows the opening, closing, high, and low prices for a specific period. Cool, right?
Think of them as your market mood ring. They change color and shape based on price action. This makes them super easy to read at a glance.
Basic Structure of a Candlestick

Let’s get up close and personal with these candies. A typical candlestick has two main parts:
- The body: This is the thick part of the candle. It shows the opening and closing prices.
- The wick (or shadow): These are the thin lines above and below the body. They represent the highest and lowest prices during that period. The color matters too. A green (or white) candle means the price went up. A red (or black) candle? You guessed it – price went down.
Below’s a more in-depth explanation:
Bullish Candlesticks:
Green/White Candlestick: The closing price is higher than the opening price, indicating a bullish trend.
Hollow Candlestick: The body is empty, with the closing price above the opening price.
Bearish Candlesticks:
Red/Black Candlestick: The closing price is lower than the opening price, indicating a bearish trend.
Filled Candlestick: The body is filled, with the closing price below the opening price.
Common Types of Candlesticks

Now, let’s meet the stars of the show. Here are some candlestick types you’ll see often:
1. Doji
This little fella looks like a cross or a plus sign. It happens when the opening and closing prices are nearly identical.
What does it mean? The market is undecided. It’s like a price tug-of-war between buyers and sellers.
2. Hammer and Hanging Man
These two look alike but appear in different trends. A hammer has a small body at the top and a long lower wick. It often signals a potential upward reversal when seen in a downtrend.
The hanging man? It’s the same shape but appears in an uptrend. It could mean the bulls are losing steam. Watch out for a potential drop!
3. Engulfing Patterns
These patterns involve two candles. In a bullish engulfing pattern, a green candle completely engulfs the previous red candle. It’s like the bulls are saying, “Move over, bears!”
A bearish engulfing is the opposite. A red candle swallows up the previous green one. The bears are flexing their muscles here.
4. Shooting Star and Inverted Hammer
The shooting star has a small body at the bottom with a long upper wick. Spot this in an uptrend? The party might be over soon.
Meanwhile, an inverted hammer looks the same but appears in a downtrend. It could be a sign that buyers are stepping in.
5. Marubozu
This is a candle with no wicks (or very tiny ones). It shows strong conviction. A green Marubozu? Full-on bullish. A red one? The bears are in control.
How to Read Candlestick Patterns
Now, don’t get overwhelmed. Reading candlesticks is like learning a new language. It takes practice. Here are some tips:
- Look at the big picture. Single candlesticks can be helpful, but patterns are more powerful.
- Consider the trend. A bullish signal in a downtrend might not be as strong as one in an uptrend.
- Use other indicators. Candlesticks work best when combined with other analysis tools.
The more charts you study, the better you’ll get.
Remember, no pattern is foolproof. They’re hints, not guarantees. Always use proper risk management.
Candlestick patterns are like secret messages from the market. They can give you valuable insights into price action and potential reversals. But like any skill, reading them takes time and practice.
Therefore, it’s important to practice and familiarize yourself with these patterns to improve your technical analysis skills.
So, what are you waiting for? Light that candlestick chart, open a demo account with VT Markets today and start your Forex journey today. Happy trading!