Japanese Candlesticks Patterns Explained
Advanced Candlesticks Patterns Discussed
Brief History
Candle-sticks were developed in the 18th century by the legendary rice trader known as Homma Munehisa to give an overview of the opening, high, low & closing market stocks price over a given period of time.
They were used by the legendary rice trader to predict future market stocks prices. After dominating in the rice market, Munehisa then eventually moved to the Tokyo exchanges where he then gained a huge fortune using this analysis. It is said that He made over hundred consecutive winning trades.
Types of Stocks charts
There are Three types of charts used in Stocks: Line, bar & candlesticks.
Line - plots a continuous line connecting closing stocks prices of a stocks.
Bars- displayed as sequence of OHCL bars. OHCL represents OPEN HIGH LOW and CLOSE. Opening stocks price is displayed as a horizontal dash on the left & closing stocks 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 - Best Stocks Candlesticks Book - these use the same price data as bar charts (open, high, low, and close). However, they in a much more visually identifiable way which resembles a candle with wicks on both ends.
How to Analyze Best Stocks Candlesticks Book
The rectangle part is known as body.
The high and low are described as shadows & plotted as poking lines.
The color is either blue or red
- (Blue or Green Color) - Stocks Prices moved up
- (Red Color) - Stocks Prices moved down
Most stocks trading platforms like the MT4, use colors to mark the direction. Colors used are blue or green: when price moves upward, red: when the price moves downward.
Candle Sticks Vs. Bar Chart
When candlesticks are used it's very easy to see if the stocks price moved up or down as opposed to when bars are used.
The Best Stocks Candlesticks Book also have very many formations that are used to trade the Stocks market. Best Stocks Candlesticks Book - candlesticks patterns have different technical analysis interpretation and the most common Best Stocks Candlesticks Book are:
The above Best Stocks Candlesticks Book and Patterns is what makes the Japanese candlesticks patterns popular among stocks technical traders & it is why this type of stocks analysis are the most widely used when it comes to analyzing the stock trading market. The analysis for these Japanese candlesticks pattern formations in stock trading is the same as that one used in stock trading - Best Stocks Candlesticks Book.
Drawing japanese Candles Stocks Charts in MetaTrader 4 Platform
To draw Candlestick Charts on the MT4, choose MT4 charts drawing tools within the "MetaTrader 4 Tool bar" - shown below.
To view this tool-bar in MT4 navigate to 'View' Next to file at top left corner of the MT4 Platform, Click 'View', Then Click 'Toolbars', Then check 'Charts' Button Key. Above Charts tool-bar will appear.
Once the above tool-bar, appears you can then choose the type you want to convert to, If you want to view using the bar format, click the bar chart tool button as displayed above, for line format click the line chart tool button key, for Japanese candles format click "candlesticks chart tool button key".
All Candles Patterns Explained. Advanced Candles Patterns Book PDF - Advanced Candles Patterns Explained. Bullish Stock Candlesticks Patterns and Bearish Stock Candlesticks Patterns and Candlestick Continuation Patterns PDF - How to Read Candlestick Chart for Day Trading
