Japanese Candlesticks Commodities Trading Candles Patterns
Trade Commodity Trading with Commodity Trading Candle Stick Pattern
Brief History
Candlesticks were developed in 18th century by legendary rice trader called Homma Munehisa to give an overview of opening, high, low & closing market commodity price over a given time period.
They were used by the legendary rice trader to predict future market commodity prices. After dominating the rice market, Munehisa eventually moved to the Tokyo exchanges where he gained a huge trading fortune using this analysis. He is said to have made over a hundred consecutive winning trades.
Types of Commodity Trading charts
There are Three types of charts used in Commodity Trading: Line, bar and candlesticks.
Line - plots a continuous line connecting closing commodity prices of commodity.
Bars- displayed as sequence of OHCL bars. OHCL represents OPEN HIGH LOW and CLOSE. Opening commodity trading price is displayed as a horizontal dash on the left & closing commodity trading 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 Charting Techniques - these use the same commodity price data as bar charts (open, high, low, & close). However, they are drawn and represented in a more visually identifiable way which resembles a candlestick with wicks on both its ends.
How to Interpret Japanese Candlestick Charting Techniques
The rectangle section is known as body.
The high & low are described as shadows & drawn as poking lines.
The color is either blue or red
- (Blue or Green Color) - Commodity Trading Prices moved up
- (Red Color) - Commodity Trading Prices moved down
Most commodity trading platforms like the MT4, use colors to mark the direction. Colors used are blue or green: when price moves up, red: when the price moves down.
Candlesticks Vs. Bar Chart
When candlesticks are used it is very easy to see if the commodity price moved up or down as opposed to when a bar Charts are used.
The Japanese Candlestick Charting Techniques also have very many formations that are used to trade the Commodity market. Japanese Candle Charting Techniques - candles patterns have different technical analysis explanation and the most common Japanese Candlestick Charting Techniques are:
The above Japanese Candlestick Charting Techniques and Patterns is what makes the Japanese candlesticks popular among commodities trading technical traders & it is why this type of analysis are the most widely used when it comes to analyzing the commodities trading market. The analysis for these Japanese candlesticks pattern formations in commodity trading is same as that one used in stocks trading - Japanese Candlestick Charting Techniques.
Drawing japanese Candlesticks Charts in MetaTrader 4 Platform
To draw these on the MT4, select the MT4 charts drawing tools within the "MT4 Toolbar" - shown below.
To view this tool-bar on MetaTrader 4 navigate to 'View' Next to file at the 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 select the type you want to convert to, If you want to view using the bar format, click the bar tool button key as displayed above, for line format click the line tool button, for Japanese candlesticks format click "candlesticks tool button key".
Commodity Trading Japanese Candlesticks. Japanese Candlesticks Commodity Trading Candlesticks Patterns - Commodity Trading Using Candlesticks. Commodity Trading with Candle Stick - Trade Commodity Trading with Commodities Candle Pattern
