If you want to become a truly successful trader, viewing forex charts correctly is very important. I see many people who start trading and get confused by candlesticks, but in reality, it’s not as difficult as you think.

Candlesticks are a fundamental tool that appears on every trading platform. I’ve seen traders who make good profits because they understand how to read forex charts deeply. No need for complicated tools; just reading candlesticks is enough.

A candlestick chart consists of individual candlesticks, which show price movements. It tells us the opening price, closing price, highest price, and lowest price within a specified period. Whether it’s a 15-minute, 1-hour, or weekly chart, it works the same.

What I like about reading forex charts is that they clearly show traders’ emotions. When a candlestick is white (Bullish), it indicates buying pressure wins. When it’s black (Bearish), it shows selling pressure wins. If the candlestick is long, it means that side has clearly won.

The wick of the candlestick is also important. If the wick is short, the price didn’t fluctuate much. But if the wick is long, it indicates intense battle between buying and selling forces.

Now, let’s look at some patterns. The three basic patterns you need to know are Doji, Marubozu, and Spinning Top.

A Doji is a candlestick where the opening and closing prices are the same. It signals that buying and selling forces are balanced and may indicate a trend reversal. There are different types of Doji, such as Gravestone Doji, which suggests increasing selling pressure, or Dragonfly Doji, which indicates increasing buying pressure.

Marubozu is a full-bodied candlestick with no wicks. If it’s white, it shows that buying pressure dominates the entire period. If it’s black, it shows selling pressure dominates.

A Spinning Top is a candlestick with a short body but long wicks. It indicates market indecision, with no clear dominance of buying or selling forces.

Once you understand these basic patterns, you should study more complex ones like Hammer and Hanging Man.

A Hammer appears in a downtrend and signals that selling pressure is weakening, and buying is starting to reverse. A Hanging Man appears in an uptrend and indicates that buying pressure is weakening, with selling coming in.

Inverted Hammer in a downtrend suggests that buying is trying to push prices higher. Shooting Star in an uptrend indicates that selling is trying to push prices lower.

For two-candlestick patterns, Bullish Engulfing is when a black candle is followed by a much larger white candle, signaling a reversal from downtrend to uptrend. Conversely, Bearish Engulfing is the opposite.

Tweezer Tops and Tweezer Bottoms look like tweezers. When two candles have long wicks of equal length, it’s a sign of a potential trend reversal.

Three-candlestick patterns are more complex. Morning Star signals a reversal from downtrend to uptrend, consisting of a downtrend candle, a Doji, then an uptrend candle. Evening Star is the opposite.

Three White Soldiers are three consecutive upward candles, indicating strong buying. Three Black Crows are three consecutive downward candles, indicating strong selling.

Three Inside Up and Three Inside Down are more advanced patterns that clearly indicate trend reversals.

A key tip is not to rely solely on candlestick patterns. If a pattern has less than a 50% success rate, consider other factors such as news, support and resistance levels, and overall market conditions.

Reading forex charts isn’t an exact science, but if you study these patterns and combine them with real experience, your skills will improve. I recommend practicing on a demo account first, then trading live, because reading forex charts requires real experience.