The candlestick chart is used by traders to predict possible price movement based on past patterns. Candlesticks are useful when trading as they show four price points (open, close, high, and low) throughout the specified period of time.

Candlesticks play an important role in forex trading because they visually display price movements within a chosen timeframe. Each candlestick shows the open, close, high, and low, giving traders a clear picture of market behaviour. Unlike simple line charts, candlesticks provide more detail, helping identify patterns that signal potential reversals or continuations. For example, doji, hammer, or engulfing patterns can reveal market sentiment shifts. Candlestick analysis allows traders to gauge momentum, indecision, and buying or selling pressure. This helps in making better entry and exit decisions. While candlesticks should not be used alone, combining them with technical indicators or support and resistance levels makes them a powerful tool for analysing price action in forex markets.