Summary: Japanese Candlesticks

Summary: Japanese Candlesticks

Candlesticks

  1. When the close is over the open, a hollow candlestick (usually displayed as white) is attracted.
  2. When the close is underneath the open, a filled candlestick (usually displayed as black) is attracted.
  3. The hollow or filled portion of the candlestick is known as the “real body” or body.
  4. The skinny lines poking above and underneath the body display the high/low range and therefore are known as shadows.
  5. The top upper shadow may be the “high”.
  6. The foot of the low shadow may be the “low”.

Long bodies indicate strong purchasing or selling. The longer your body is, the greater intense the purchasing or selling pressure.

Short physiques imply hardly any purchasing or selling activity. In street foreign exchange lingo, bulls mean purchasers and bears mean retailers.

Upper shadows signify the session high.

Lower shadows signify the session low.

You will find various kinds of candlestick designs, but they may be categorized into the number of bars from the candlestick pattern. You will find single, dual, and triple candlestick formations. The most typical kinds of candlestick designs would be the following:

Candlestick Patterns

Just make reference to the candlestick Cheat Sheet for any quick reference on which these candlestick designs mean.

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

And lastly, here are a few words of knowledge.

Simply because candlesticks hint in a reversal or continuation, it does not mean it’ll happen without a doubt! You have to always consider market conditions and what cost action is suggesting.

This is actually the foreign exchange market and absolutely nothing is occur stone!

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