Forex candlesticks are especially useful in offering insight into the short-term price movements of the markets, making them a valuable tool for forex day trading strategies. In a typical Japanese candlestick chart, each candlestick represents the open, high, low and close prices of a given time period for a currency pair.
For instance, in a daily candlestick chart for EUR/USD, the wick or shadow at the top of the candlestick would show the highest level prices reached on that day, while the wick or shadow at the bottom of the candlestick would show the lowest level prices reached on that particular day.
The formation of a candlestick requires the open, high, low and close prices of a specific period. For example, a trader would need the daily, open, high, low and close price to generate a daily candlestick. This would be the same for either a weekly or monthly candlestick. For the candlestick to be successfully evaluated, you would need to wait for the closing price of a session.