How to Master Japanese Candlesticks
Japanese candlesticks are basically an ancient tradition of the Chinese for keeping tabs on the rice markets. Considered by many (safe to say at this point.) to be the best way to view an asses price action. Japanese candlestick have become popular in just about every liquid market.
Japanese candlestick charts display market sentiment like other charts but most would agree you get a little more insight from a candlestick chart. Basically you measure 2 parts of a candlestick, the body, and the wicks. The body can be either full or hallow, and the wick or shadows, can be long or short, or not present at all. All tell a story.
The top of the wick / shadow marks your high for the session. The low wick, below the real body marks the sessions low. The open on a hallow body is marked by the bottom of the body, and the high is the top. A full candlesticks marks its open at the top, and its bottom is the close of the session. So if price closes higher than it opens, you get a hallow candlestick. If price closes lower than it opens you get a full candlestick. (See below.)
Candlestick patterns are not only more easy to read, they are also more intuitive once you get the hang of reading them. You see there are patterns with candlesticks you will soon learn to easily recognize, combine this with the intuitiveness and you have yourself a method for assessing price far superior to any other.
Different body sizes represent the distance between open and close. A longer hallow body represents a nice bullish candlestick where the close is higher than the open. A longer filled or black body represents a nice bearish session / day where the close is much lower than the open. In the flip side short bodies represent a close and open relatively close to each other.
When you have a body with no shadows its called a Marubozu. I can be black or white in which case its a "black Marubozu or a white Marobozu. In each case the open and close are equal to the high and the low. With the black the open is equal to the high and the close is equal to the low. The white would be the open is equal to the low and the close is equal to the high.
A long or short shadow with a short body are called spinning tops. Spinning tops represent indecision. The short body indicates that there was little change in the trading and the long shadows indicate there was a lot of activity with both bulls and bears. However it also indicates that neither buyer nor seller could get the upper hand, resulting in somewhat of a standoff. - 23199
Japanese candlestick charts display market sentiment like other charts but most would agree you get a little more insight from a candlestick chart. Basically you measure 2 parts of a candlestick, the body, and the wicks. The body can be either full or hallow, and the wick or shadows, can be long or short, or not present at all. All tell a story.
The top of the wick / shadow marks your high for the session. The low wick, below the real body marks the sessions low. The open on a hallow body is marked by the bottom of the body, and the high is the top. A full candlesticks marks its open at the top, and its bottom is the close of the session. So if price closes higher than it opens, you get a hallow candlestick. If price closes lower than it opens you get a full candlestick. (See below.)
Candlestick patterns are not only more easy to read, they are also more intuitive once you get the hang of reading them. You see there are patterns with candlesticks you will soon learn to easily recognize, combine this with the intuitiveness and you have yourself a method for assessing price far superior to any other.
Different body sizes represent the distance between open and close. A longer hallow body represents a nice bullish candlestick where the close is higher than the open. A longer filled or black body represents a nice bearish session / day where the close is much lower than the open. In the flip side short bodies represent a close and open relatively close to each other.
When you have a body with no shadows its called a Marubozu. I can be black or white in which case its a "black Marubozu or a white Marobozu. In each case the open and close are equal to the high and the low. With the black the open is equal to the high and the close is equal to the low. The white would be the open is equal to the low and the close is equal to the high.
A long or short shadow with a short body are called spinning tops. Spinning tops represent indecision. The short body indicates that there was little change in the trading and the long shadows indicate there was a lot of activity with both bulls and bears. However it also indicates that neither buyer nor seller could get the upper hand, resulting in somewhat of a standoff. - 23199
About the Author:
Japanese candlesticks are the choice for professional traders and anyone who wants to have incredible insight on price action, and current market conditions. If you aren't using candlestick patterns to trade, you are most definately missing the boat when it comes to trading. To begin using Japanese candlesticks now visit our website and download our free course material. http://www.candlestickgenius.com
posted by X - Men @ 8:10 PM
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