Question about forex pairs and candlesticks

Mcdogg

Trader
Jul 6, 2016
4
0
6
42
Hi
This is probably the most basic thing but i would to know what it means when the candlestick is bearish for the FX pairs CAD/JPY.
If the candlesticks are going down, does that mean the canadian dollar is weakening and the Yen is strengthening ?
Does the same principle apply to every other pairs? For USD/JPY, if the candlesticks are going up, it means that the USD is strengthening but the YEN is weakening?
Please help me to understand this
Thanks!
 

Enivid

Administrator
Staff member
Nov 30, 2008
16,529
919
144
Odessa
www.earnforex.com
If the candlesticks are going down, does that mean the canadian dollar is weakening and the Yen is strengthening ?
Yes. If CAD/JPY is going down, it means that Canadian dollar is losing strength against the Japanese yen.

Does the same principle apply to every other pairs? For USD/JPY, if the candlesticks are going up, it means that the USD is strengthening but the YEN is weakening?
Yes, you are completely correct.
 
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Jason Rogers

Master Trader
Sep 16, 2011
24
1
49
New York, NY
www.fxcm.com
Thank you for clarifying, helps tremendously!

To add to what Enivid has already told you, it might help to look at an example with real numbers.

At the time of this post, the CAD/JPY rate is about 79.48

That means 1 Canadian Dollar is worth 79.48 Japanese Yen.

Suppose that rate fell to 79.00

That would mean 1 Canadian Dollar would be worth only 79.00 Japanese Yen.

From this example, you can see that a falling CAD/JPY rate means the Canadian Dollar is falling in value relative to the Japanese Yen. By contrast, a rising CAD/JPY rate would mean the Canadian Dollar is rising in value relative to the Japanese Yen.
 
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Alexfx79

Active Trader
Sep 22, 2016
376
20
39
42
Berlin
In general you trade a certain instrument (e.g. CADJPY), so you don't need to find what currency is streanthing and which is weakening. It's only about your interest, but it's not essencial for trading.
 

radaway

Trader
Oct 5, 2016
39
1
19
as Enivid showed...:) , here's a rule of the thumb that I practice

if right hand side (rhs) is 'strong', the candles will fall down ( we got signal to sell )
if right hand side (rhs) is 'weak', the candles will rise up ( we got signal to buy)

my 2 cents :)
 
Hi
This is probably the most basic thing but i would to know what it means when the candlestick is bearish for the FX pairs CAD/JPY.
If the candlesticks are going down, does that mean the canadian dollar is weakening and the Yen is strengthening ?
Does the same principle apply to every other pairs? For USD/JPY, if the candlesticks are going up, it means that the USD is strengthening but the YEN is weakening?
Please help me to understand this
Thanks!

XXX/YYY is the general format by which currency pairs are denoted, where XXX and YYY both refer to three-letter code of international currencies. If you have US dollars (USD) and want to buy euros (EUR), in the jargon of Forex market it is said to you buy EUR / USD. That means USD is getting strong, that's why you are "buying". So that you need to buy with a low price and later you can sell it on high price. You got that, right?
 

Winjak

Active Trader
Sep 22, 2016
57
9
29
47
Jakarta
In general you trade a certain instrument (e.g. CADJPY), so you don't need to find what currency is streanthing and which is weakening. It's only about your interest, but it's not essencial for trading.
I agree with this point of view. It doesn't matter in fact. You buy or sell A PAIR :)
 

f4forex

Active Trader
Oct 8, 2015
231
2
29
39
Maybe other traders have their own opinions like some trade those which have more volatility, others including me used to trade EURUSD as it is a good pair for earning good ROI.
 

Robian

Active Trader
Sep 22, 2016
34
3
29
33
Jakarta
Maybe other traders have their own opinions like some trade those which have more volatility, others including me used to trade EURUSD as it is a good pair for earning good ROI.
I started with EURUSD and majors but then appeared that commodity currencies are okay for ROI too. As for me, their movement is easy to predict