Japanese Candlestick Charting Techniques: A Beginner's Guide
How to Use Japanese Candlestick Charting Techniques in Your Trading If you are looking for a way to improve your technical analysis and trading skills, you might want to learn about Japanese candlestick charting techniques. These are a type of graphical representation of price movements that can help you identify patterns, trends, reversals, and signals in the market. What are Japanese candlesticks? Japanese candlesticks are composed of four elements: the open, high, low, and close prices of a given time period. Each candlestick represents one time unit, such as a day, an hour, or a minute. The body of the candlestick shows the difference between the open and close prices, while the upper and lower shadows show the high and low prices. The color of the body indicates whether the price rose or fell during that time period. A green or white body means that the price closed higher than it opened, while a red or black body means that the price closed lower than it opened. How to inte...