Candlestick Charts A
candlestick chart shows how currency pairs fluctuate in relative value
over time. The x axis shows time in what ever increment a trader wants
to see it. It could be minutes, hours, days or even weeks. The y axis
shows the value of one base currency unit relative to the other
currency in the pair. The candlestick chart below shows EUR/USD at five minute intervals over four hours. 
The body of the chart shows blue and red rectangles - which are the
"candlesticks". When the candlestick is blue, it means the value of the
base currency has increased relative to its pair in that time interval.
For blue candlesticks, the bottom edge is the opening price and the top
edge is the closing price in the time interval.
When the candlestick is red, it means the value of the base currency
has decreased relative to its pair in that time interval. For red
candlesticks, the top edge is the opening price and the bottom edge is
the closing price in the time interval.
The thin lines protruding from the top and bottom of the rectangles are
called “wicks” or “tails” or “shadows”. They display the high and low
prices of the base currency relative to its pair in that time interval. Most
often, we see “Bid” charts – which shows the price of selling the base
currency relative to its pair. But a trader can also choose to display
"Ask" charts - which show the price of buying the base currency
relative to its pair.
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