Japanese candlestick charting techniques have been around for almost as long as candlestick charts themselves. This method of tracking price movements was invented by a Japanese commodity trader named Homma who dealt in rice in the 18th century. He needed a way of marking not just price but open, close, high and low prices over a time period that was easy to read at a glance.

There are many free forex charts available through brokers or charting services, enabling the foreign exchange trader to compare different indicators on which to base his trades. One of these indicators is known as the Parabolic Stop and Reverse which when applied correctly can help you with your swing trading decisions…