How to read japanese candlestick charts in the image below, you can see an examples of what the real body, open, close, and shadows (or wicks) of japanese candlesticks are. as you can see from the picture above, the shadows tell us a story just like the real bodies of these candles do.. Japanese candlesticks are gaining popularity among individual traders, mainly because they are easier to learn and interpret versus bar charts. of equal importance is the fact that they fall into the category of leading indicators .. Start trading using japanese candlesticks. trading japanese candlesticks is one of the oldest forms of charting price action, the movement of a particular market. in fact candlestick charts date back 18th century japan when rice traders needed to trade in what was one of the first futures markets in the world..
Learn how to use single candlestick patterns to identify potential market reversals. here are the four basic single japanese candlestick patterns: hammer and hanging man. the hammer and hanging man look exactly alike but have totally different meanings depending on past price action.. Japanese candlestick chart analysis, so called because the candlestick lines resemble candles, have been refined by generations of use in the far east. candlestick charts are now used internationally by swing traders, day traders, investors and premier financial institutions.. The japanese candlestick chart to the right shows the same price movement, however it is made up of individual candlesticks. traders prefer to read candlestick charts because they include more information than a line chart and can be more useful for making trading decisions..
