I use Candlestick charts exclusively when doing my analysis when you get used to how they work they provide an unparalleled inside into the short-term market dynamics of a given stock. It is called a Candlestick chart because the bars look like candlesticks with a wick and the main body. Used widely in Japan and gaining a strong foothold in the rest of the world, the Japanese Candlestick chart gives an excellent insight into current and future price movements. There are over 120 candlestick patterns to learn and recognize, making the whole process of analysis very time-consuming.

Today they are used on stocks, commodities, and foreign exchange. Developed in the 1700s, Japanese candlesticks were used to track rice prices. Japanese Candlestick charts represent the supply and demand of any stock or asset. How to Read Candlesticks: Charts, Patterns & Pro Tips What Are Japanese Candlestick Patterns Who has the time to learn the name of every pattern and its meaning? Not you, I can imagine. The theories behind candlestick charts are so abundant that one could write a book about them, and many have.Īt first, candlesticks look very difficult to understand, and there are at least 60 different main patterns. Candlestick Analysis During the 2008 Financial Crisis.The Candlestick Wick Shows the Day’s High and Low The Candlestick Close – Bottom of the Filled Candle or Top of Hollow Candle

The Candlestick Low – Bottom of the Wick or Candle The Candlestick High – Top of the Wick or Candle Candle Open – Bottom of Hollow Candle, Top of Filled Candle How to Read Candlestick Charts: 7 Step Example.Candlestick Pattern Recognition Algorithms & Indicators.

Japanese candlestick charting