🎎Anatomy of A Japanese Candlestick🎎Hello, my dear-dear friends!!!😍As promised you, today we’ll talking about 🎎Japanese candles!!!
---Link on a good view🧡🧡🧡
🧐🧐If you are interested in learning about the configurations of Japanese candles, write about it in the comments, I make new post for you✍🏻
☝🏻Before analyzing any chart, trader can choose the option of displaying it in the form of lines, bars or candles.☝🏻
🎎Japanese candles can help to see well many patterns on the chart and are an additional tool for technical analysis.❗
❗❗❗ Searching and finding candlestick configurations is relatively easy, and signals they give can be very useful in developing trading strategies.❗❗❗
👉🏻Japanese candles are called candles🕯 because they resemble a candle with their elongated vertical shape, and Japanese🎎 - as they came from Japan. There, such figures were used to analyze changes in rice prices from the 17th century.
☝🏻Each individual Japanese candlestick looks very simple and consists of two elements:
👉🏻• The body of the candle is a rectangle that can be either very long or very short, down to one horizontal line.
👉🏻• Candle Shadows - vertical lines above and below the rectangle.
👊🏻 The essence of the Japanese candle is:
• One of the left corners of the candle body is the price of the asset at the time the candle opens.
• One of the right corners is the price at the time of closing.
For a green candle, the open price is the lower left corner, the close price is the upper right corner.
For a red candle, the opening price is the upper left corner, the closing price is the lower right.
The color of the candle depends on whether the price has changed up or down during its existence. If up, then it turns green💚, if down, then red🧡.
Japanese candles make it possible to predict:
• The occurrence of a trend.
• Continuation of trends.
• Change (reversal) of trends.
❗❗❗ There are a lot of candle configurations, however, they are all simple and easy to find on the chart. But it is important to remember that:
• Candlestick configurations alone are not enough to complete transactions.
• You need to look for other signals to determine when to enter the market.
• Be sure to calculate the global trend and make transactions only in its direction.
• It is better to use Japanese candles mainly on daily charts. On a smaller scale, the effectiveness of candlesticks is greatly reduced.
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