I do not know if this is strictly a German tradition or not, but even after the "Children's Service" -- alas has gone by the wayside in many places -- on Christmas Eve, at home my father read Luke 2 (from the King James, of course, which my congregation has returned to for this one day of the year by request of members). We actually lit a few of the candles on the tree that were deemed safe to light -- bucket of water at the ready, of course. (and the tree had only been up for a few days at that point.) We then sang "Silent Night" (in English since we children did not know the German) before going to bed to await Santa.
I even remember the years when this was by the light of kerosene lamps. Oh, my.
Candles went by the wayside with the introduction of rural electricity and the availability of "bubble lights," which were in the shape of candles.
Where I lived as a child, there were no "midnight candlelight" services. That was a tradition I was introduced to only after I moved to the "big city" of Fort Wayne. Probably because the farmers were still going to have to milk the cows, feed and water all the livestock, gather eggs, etc. at an early hour the next morning, Christmas or not.