Trading Japanese candle Charts allows traders to understand the markets sentiment where the high and low are emphasized. candlesticks give emphasis to the relationship between close price and open price and provide visual clues that make reading price easier.
The body of a candlestick shows the difference between the open and closing price. clear colour for up and black colour for down when you look at the forex market chart. The wicks (or shadows) point out the extreme low and the extreme high price for the currency of that day.
Because the body of the candle is thicker than the shadow, candlestick charts visually stress how the close price relates to the open price far more than bar charts. The real body is the essence of price movement. The power of candles is their ability to visually screen out this static and focus on what the market was able force price to do during a period of trading.
A candlestick alone does not give much information useful to determining market sentiment. Experience traders do however look for specific patterns of candlesticks to gauge future price movements. Many of these candlestick names have their unusual names like Morning Star, Dark Cloud Cover or Engulfing Pattern, Abandoned Baby, Three White soldiers, Dragonfly Doji, Three Stars in the South, Head and Shoulder reversal pattern, to name a few. You can find out more on candlesticks to help you in your trading at http://www.fxwords.com/j/japanese-candlesticks.html