Japanese candlesticks with short shadows indicate that most of the trading action was confined near the open and close.Ī White Marubozu contains a long white body with no shadows. The upper and lower shadows on Japanese candlesticks provide important clues about the trading session.Ĭandlesticks with long shadows show that trading action occurred well past the open and close. No, we’re not talking about wearing dark smokey eye shadow. In other words, the bears were grabbing theīulls by their horns and body-slamming them. This indicates that prices fell a great deal from the open and The longer the black Japanese candlestick, the further the close is below the open. Long black (filled) candlesticks show strong selling pressure. In other words, the bulls are kicking the This indicates that prices increased considerably from open to closeĪnd buyers were aggressive. The longer the white candlestick, the further the close is above the open. Long white Japanese candlesticks show strong buying pressure. In forex lingo, bulls mean buyers and bears mean sellers. Short bodies imply very little buying or selling activity. That either buyers or sellers were stronger and took control. The body is, the more intense the buying or selling pressure. Long bodies indicate strong buying or selling. And when itĬomes to forex trading, there’s nothing naughtier than checking out the Just like humans, candlesticks have different body sizes. Let’s break down the different parts of a Japanese candlestick. The bottom of the lower shadow is the “low”.The top of the upper shadow is the “high”.The thin lines poking above and below the body display the high/low range and are called shadows.The hollow or filled section of the candlestick is called the “real body” or body.If the close is below the open, then a filled candlestick (usually displayed as black) is drawn.If the close is above the open, then a hollow candlestick (usually displayed as white) is drawn.Japanese candlesticks are formed using the open, high, low, and close of the chosen time period. They are used to describe the price action during the given time frame. Japanese candlesticks can be used for any time frame, whether it be one day, one hour, 30-minutes – whatever you want! Japanese created their own old school version of technical analysis toĪ Westerner by the name of Steve Nison “discovered” this secret technique called “Japanese candlesticks,” learning it from a fellow Japanese broker. Japanese Candlestick Tradingīack in the day when Godzilla was still a cute little lizard, the The previous forex lesson, we’ll now dig in a little and discuss them While we briefly covered Japanese candlestick charting analysis in Steve Nison, for “discovering” the art of candlesticks! What is a Japanese Candlestick? 7.1 Using Candlesticks with Support and Resistance.7 Candlesticks with Support and Resistance.6.2 Three White Soldiers and Black Crows.4.1.2 Recognition Criteria Hanging Man:.

Japanese candle pattern cheat sheet