Using candlesticks patterns for price action forex trading is a very simple method of currency trading. It requires very little technical analysis and yet traders who follow price action trading methods will often say that it has turned around their trading experience and allowed them to make profits that they could never have achieved when using other systems. Why is this, and how does price action trading work?

Firstly, traders using this approach will avoid the stochastic indicator, MACD, RSI and others which they say are lagging indicators. Of course this is true, but it does not necessarily mean that these indicators are useless for everybody. Still, if you find them confusing or unnecessary it may be good news to know that there is another way.

During the 17th century, there was a Japanese man who became famous with regards to rice trading. It is believed that this man won over one hundred trades. His secret was using candlestick charting.

You may have a common query which most people have in mind: What are candlesticks?

Candlesticks can be visualized as your typical bar chart outlined in two dimensions. Many are aware that the usual bar chart has its components, just like using the candlestick chart.

The major components in candlestick charting are: