Japanese Bitcoin Candlesticks Patterns Explained

Bitcoin Trading with Candlestick

Brief History

Candlesticks were developed in the 18th century by the legendary rice trader known as Homma Munehisa to give the overview of opening, high, low & closing market bitcoin price over a given time period.

They were used by the legendary rice trader to predict future market bitcoin prices. After dominating rice market, Munehisa then eventually moved to the Tokyo Exchanges where he then gained a huge fortune using this trading analysis. It is said that He made over a hundred consecutive winning trades.

Types of BTCUSD Trading charts

There are 3 types of charts used in Bitcoin: Line, bar & candles.

Line - plots a continuous line connecting closing bitcoin trading prices of bitcoin crypto.

Bars- displayed as sequence of OHCL bars. OHCL represents OPEN HIGH LOW and CLOSE. Opening bitcoin trading price is displayed as a horizontal dash on the left and closing bitcoin price as a horizontal dash on the right.

The main disadvantage of a bars is that it isn't visually appealing, therefore most traders don't use them.

Candlesticks Patterns - Japanese Candlestick Bitcoin Charting Techniques - these use the same bitcoin trading price data as bar crypto charts (open, high, low, & close). However, they are displayed in a much more visually identifiable way which resembles a candle with wicks on both its ends.

How to Analyze Japanese Candlestick Bitcoin Charting Techniques

The rectangle section is called the body.

The high & low are described as shadows and plotted as poking lines.

The color is either blue or red

• (Blue or Green Color) - Bitcoin Prices moved up
• (Red Color) - Bitcoin Prices moved down

Most bitcoin trading platforms like the MT4, use colors to mark the direction. Colors used are blue or green: when bitcoin trading price moves up, red: when bitcoin trading price moves down.

Candle Sticks Vs. Bar BTCUSD Trading Chart

When candlesticks are used it is very easy to see if the bitcoin price moved up or down as opposed to when a bar Charts are used.

The Japanese Candlestick Bitcoin Charting Techniques also have very many formations that are used to trade the Bitcoin Trading market. Japanese Candlestick Bitcoin Charting Techniques - candlesticks patterns have different technical analysis explanation and the most common Japanese Candlestick Bitcoin Charting Techniques are:

The above Japanese Candlestick Bitcoin Charting Techniques and Patterns is what makes the Japanese candlesticks popular among cryptocurrency trading technical traders and it's why this type of analysis are the most widely used when it comes to analyzing the btcusd trading market. The analysis for these Japanese candlesticks pattern formations in bitcoin trading is the same as that one used in stocks trading - Japanese Candlestick Bitcoin Charting Techniques.

Drawing japanese Candles BTCUSD Charts on MT4 Platform

To draw these on the MT4, choose MetaTrader 4 charts drawing tools within the "MT4 Toolbar" - shown below.

To view this toolbar in MetaTrader 4 navigate to "View" Next to file at top left corner of MT4 Platform, Click "View", Then Click "Tool bars", Then check "Charts" Button. Above toolbar will appear.

Once the above tool bar, pops up you can then choose the type you want to convert to, If you want to view using the bar format, click the bar tool button key as shown above, for line format click the line tool button, for Japanese candles format click "candlesticks tool button key".

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