The Japanese candlestick is the chart used in the analysis of the financial markets. The idea of Japanese candles dates back to the 17th century in Japan, where Japanese farmers traded in rice Fabtecaro this idea in order to speculate in the market. It is now the most common to define the pattern of technical analysis in the financial markets and most traders use it in the analysis.
- Candlestick have different patterns and shapes and each shape has its own reading and indication of the pattern of movement and price orientation.
- Helps traders to analyze the chart well and direct the price more accurately and faster during the currency of speculation
- The price behavior analysis is largely based on the Japanese candlestick chart.
- Is the main driver of the price trend because most traders rely heavily on the chart, so it is the fastest way to predict the direction of the price in the financial markets.
The blue candlesticks are rising candlesticks, indicating that at this time the price hike occurred.
The red candlesticks are bearish candlesticks, pointing out that at this time there has been a fall in price.
Each candlestick expresses a certain period of time that occurred on the rise or fall.
There are many colors of Japanese candlesticks , such as white and black, depending on the type of chart and the desire of the trader to change the colors.
Highest price: the highest price reached by the candle sticks.
Lowest price: is the lowest price reached by the candle sticks.
Opening: The price at which the candle sticks begins to form.
Closing: This is the price at which the candle stick is finished.
Each Japanese candle sticks has a specific time period, and each trader depends on the duration of the Japanese candlesticks
A candle on the minute frame: Each candle sticks is a minute, in other words every minute closes a candle sticks and at the beginning of the second minute another candle opens
A five-minute candle sticks: Each five minutes you close and open another 5-minute candlesticks.
Candle sticks on frame 15 minutes: Every 15 minutes, another candle is closed and opened for 15 minutes.
On the same principle, there are candlesticks at all times.
such as one hour candle, 4 hours, one day candle sticks, one week candle, one month candle, one year candle.
The time frame of the candle stick is chosen according to the trader’s desire in the technical analysis and how it is traded in the financial markets.
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