Candle Stick Stocks Price Action Trading

How to Analyze Stocks Price Action Trading Using Japanese Candlesticks

The Japanese candlesticks techniques also have very many stocks price action pattern formations that are used to trade Stocks. These stocks price action patterns have different technical analysis interpretation and the most common are:

The above stocks action stocks price patterns is what makes the Japanese candlesticks popular among technical stocks traders and it's why this type of stocks price action stocks analysis are the most widely used when it comes to analyzing the stock market. The technical analysis for these stocks price action stocks pattern formations in stock trading is explained in the above stocks candlesticks trading price action tutorials.

What is a Stocks Candlestick?

Stocks Candles - is a stocks price representation that uses the stocks price data (open, high, low, and close of stocks price). These candlesticks resemble a candle with wicks on both ends.

Rectangle part of the candlestick is known as the body.

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

Candlestick Stocks Price Action Trading

The color of the candlestick is either blue or red

• (Blue or Green Color candle) - Stocks Prices moved up
• (Red Color candlestick) - Stocks Prices moved down

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

Candlesticks Stocks Price Action Chart Vs. Bar Charts - Candlestick Stocks Price Action Trading

When candlesticks stocks price charts are used it is very easy to see if the stocks price moved up or down as opposed to when bars are used.

Stocks candlesticks and stocks candlesticks patterns are commonly used in stocks price action trading strategies used to trade stocks.