What is Candlesticks?

[andriarto]

A candlestick chart is a style of bar-chart used primarily to describe price movements of a security, derivative, or currency over time. It is a combination of a line-chart and a bar-chart, in that each bar represents the range of price movement over a given time interval. It is most often used in technical analysis of equity and currency price patterns. They appear superficially similar to box plots, but are unrelated.

[GHOURI]

Candlesticks can be used for any time frame, whether it be one day, one hour, 30-minutes - whatever you want! Candlesticks are used to describe the price action during the given time frame.

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Candlesticks are formed using the open, high, low, and close of the chosen time period.

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".

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Sexy Bodies

Just like humans, candlesticks have different body sizes. And when it comes to forex trading, there's nothing naughtier than checking out the bodies of candlesticks!

Long bodies indicate strong buying or selling. The longer the body is, the more intense the buying or selling pressure. This means that either buyers or sellers were stronger and took control.

Short bodies imply very little buying or-selling activity. In street forex lingo, bulls mean buyers and bears mean sellers.

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Long white candlesticks show strong buying pressure. The longer the white candlestick, the further the close is above the open. This indicates that prices increased considerably from open to close and buyers were aggressive. In other words, the bulls are kicking the bears' butts big time!

Long black (filled) candlesticks show strong selling pressure. The longer the black candlestick, the further the close is below the open. This indicates that prices fell a great deal from the open and sellers were aggressive. In other words, the bears were grabbing the bulls by their horns and body-slamming them.

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Mysterious Shadows

The upper and lower shadows on candlesticks provide important clues about the trading session.

Upper shadows signify the session high. Lower shadows signify the session low.

Candlesticks with long shadows show that trading action occurred well past the open and close.

Candlesticks with short shadows indicate that most of the trading action was confined near the open and close.

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What is a Japanese Candlestick??????

While we briefly covered candlestick charting analysis in the previous lesson, we'll now dig in a little and discuss them more in detail. Let's do a quick review first.

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What is Candlestick Trading?

Back in the day when Godzilla was still a cute little lizard, the Japanese created their own old school version of technical analysis to trade rice. That's right, rice.

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A westerner by the name of Steve Nison "discovered" this secret technique called "Japanese candlesticks", learning it from a fellow Japanese broker. Steve researched, studied, lived, breathed, ate candlesticks, and began to write about it. Slowly, this secret technique grew in popularity in the 90s. To make a long story short, without Steve Nison, candlestick charts might have remained a buried secret. Steve Nison is Mr. Candlestick.

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Basic Candlestick Patterns
Spinning Tops

Candlesticks with a long upper shadow, long lower shadow and small real bodies are called spinning tops. The color of the real body is not very important.

The pattern indicates the indecision between the buyers and sellers.

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The small real body (whether hollow or filled) shows little movement from open to close, and the shadows indicate that both buyers and sellers were fighting but nobody could gain the upper hand.

Even though the session opened and closed with little change, prices moved significantly higher and lower in the meantime. Neither buyers nor sellers could gain the upper hand, and the result was a standoff.

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If a spinning top forms during an uptrend, this usually means there aren't many buyers left and a possible reversal in direction could occur.

If a spinning top forms during a downtrend, this usually means there aren't many sellers left and a possible reversal in direction could occur.

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Marubozu

Sounds like some kind of voodoo magic, huh? "I will cast the evil spell of the Marubozu on you!" Fortunately, that's not what it means. Marubozu means there are no shadows from the bodies. Depending on whether the candlestick's body is filled or hollow, the high and low are the same as its open or close. .

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sorry can't attached picture of candle sticks "white or black".

A White Marubozu contains a long white body with no shadows. The open price equals the low price and the close price equals the high price. This is a very bullish candle as it shows that buyers were in control the entire session. It usually becomes the first part of a bullish continuation or a bullish reversal pattern.

A Black Marubozu contains a long black body with no shadows. The open equals the high and the close equals the low. This is a very bearish candle as it shows that sellers controlled the price action the entire session. It usually implies bearish continuation or bearish reversal.

thanks bro very good post to understand .... what is this and how it is work ... it is very good the way you explain ...al though i have the knowledge about this but ,,, i have learn many things form this post ..
thanks again .... wish you all the best .... sty blessed

[fxrafi4]

unique character typically utilized in trade naked commercialism, as a result of they need some criteria once commercialism in accordance with its name, this candle if hooks might con excellent and may learn to trade..........

[sonali]

the Wax light(CS) strategy from Asia. It indicates dealing success in asia maybe very quickly, and may have been in Japan a lot of efficient investor. as confirmed by the appearance is Wax light strategy is commonly used by many investors around the world.

[oreoluwa]

in other to earn the best profit out of the forex market we just have to understand the Candlesticks because Candlesticks gives the direction of the trend and also gives the best price

[Nabi Ahmed Gill]

Candlesticks are a Japanese charting technique that was developed as early as the 1600's, when they were used for predicting rice prices-rice futures was one of the world's first futures markets in light of the military environment of the Japanese feudal system during that time.

Candlesticks are very similar to bar charts, but the easy to read color depiction of the price action makes it simpler for traders to gauge market psychology and price action.

Candlesticks are composed of a currency pair's open high, low and close.

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How can Candlesticks be used for Trading?

Candlesticks formations can be used to trade reversals in price or confirm a trend continuation. The following is an explanation of the most important patterns and the corresponding trading signal.

Hammer and hanging man formations have long lower wicks and small bodies. The hammer pattern appears after a currency pair has had a significant down move and is typically viewed as a bullish signal, implying a base and a trend reversal.

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The hanging man pattern appears after a currency pair has had a significant rally and is typically viewed as a bearish signal implying a top and a trend reversal. This is a bearish signal because it shows that the currency was not able to close on a positive note, which would indicate weakening market sentiment. However, with a hanging man pattern, it is important to wait for the next periods close to confirm the trend reversal.

candlestick ak indicator ha or ya indicator boht he jada famous ha trading maine or boht sara trader candlestick ko used karta han trading maine boht he best or acha indicator ha kas kar newbie traders ka laya too ya indicator boht he acha or best way agr newbie trader es indicator ko theek sa used karna too.

[orchid]

Lone Rangers - Single Candlestick Patterns
Hammer and Hanging Man

The hammer and hanging man look exactly alike but have totally different meanings depending on past price action. Both have cute little bodies (black or white), long lower shadows, and short or absent upper shadows.

[pelotrader]

Candlestick charts candlestick charts, was born in Japan.
When? no one knows exactly, but it was in Japan there has been a long time schools that teach technical analysis to trade rice.
Until one day a western called 'Steve Nison "discovered and first learned about this secret Japanese technique of acquaintances fellow Japanese broker.
Since then Steve became obsessed with this technique, he began studying, researching, writing, and slowly began to grow in popularity around the 90's. Long story short, we should be grateful to Steve Nison (Mr Candlesticks)

[Roddexx]

Oh, so the Candlestick technique from japan. It means trading progress in japan maybe very rapidly, and may have been in Japan a lot of reliable trader. as evidenced by the emergence is Candlestick technique is widely used by many traders around the world. But, what is a master trader from japan?

[amina khan]

candie sticks were introduced by japenese. it is used to know the flow of marketing the increase or decrese in it indicates the flow or ups and down in market