Note

Summary: Japanese Candlesticks

Verified Official
· Views 210

We’ve covered a lot about Japanese candlesticks.

Hopefully, you’re not at wick’s end but are actually now fired up about candlestick charts.

Maybe we’ve even ignited a flame that becomes a lifelong passion for Japanese candlesticks.

Summary: Japanese Candlesticks

Let’s summarize what you’ve learned about Japanese candlesticks:

  • If the close is above the open, then a hollow candlestick (usually displayed as white) is drawn.
  • If the close is below the open, then a filled candlestick (usually displayed as black) is drawn.
  • The hollow or filled section of the candlestick is called the “real body” or body.
  • The thin lines poking above and below the body display the high/low range and are called shadows.
  • The top of the upper shadow is the “high”.
  • The bottom of the lower shadow is the “low”.
Summary: Japanese Candlesticks

Long bodies indicate strong buying or selling. The longer the body is, the more intense the buying or selling pressure.

Short bodies imply very little buying or selling activity. In street forex lingo, bulls mean buyers and bears mean sellers.Upper shadows signify the session high.

Lower shadows signify the session low.

There are many types of Japanese candlestick patterns, but they can be categorized into how many bars make up the candlestick pattern.There are single, dual, and triple candlestick formations.

The most common types of Japanese candlestick patterns are the following:

Summary: Japanese Candlesticks

Just refer to the Japanese Candlesticks Cheat Sheet for a quick reference on what these candlestick patterns mean.

Combine candlestick analysis with support and resistance levels for the best results.

And finally, here are some words of wisdom:

Just because Japanese candlesticks hint at a reversal or continuation, it doesn’t mean it will happen for sure! You must always consider market conditions and what price action is telling you.

This is the forex market and nothing is set in stone!


And if you’re looking for a more in-depth look at Japanese Candlesticks, you can’t go wrong with the book, Japanese Candlestick Charting: A Contemporary Guide to the Ancient Techniques of the Far East. It’s written by the man himself, Steve Nison.

Reprinted from Babypips,the copyright all reserved by the original author.

Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.

FOLLOWME Trading Community Website: https://www.followme.com

If you like, reward to support.
avatar

Hot

No comment on record. Start new comment.