CFD Japanese Candlesticks

CFD with Candlestick

Brief History

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

They were used by the legendary rice trader to predict future market cfd prices. After dominating the rice market, Munehisa then eventually moved to Tokyo Exchanges where he then gained a huge trading fortune using this trading analysis. It's said that He made over 100 consecutive winning trades.

Types of CFDs charts

There are 3 types of charts used in CFD: Line, bar & candlesticks.

Line - plots a continuous line connecting closing cfd prices of a cfd.

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

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

Candlesticks Patterns - Japanese Candlestick CFD Charting Techniques - these use the same cfds price data as bar cfd charts (open, high, low, and close). However, they are displayed in a much more visually identifiable way which looks like a candle with wicks on both its ends.

How to Analyze Japanese Candlestick CFD Charting Techniques

Rectangle part is called the body.

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

The color is either blue or red

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

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

Candle Sticks Vs. Bar CFD Trading Chart

When candles are used it's very easy to see if the cfds price moved up or down as opposed to when bars are used.

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

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

Drawing japanese Candlesticks CFDs Charts on MT4 Platform

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

To view this toolbar in MT4 go to 'View' Next to file at top left corner of MT4 Platform, Click 'View', Then Click 'Toolbars', Then check 'Charts' Button Key. Above tool bar 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 as shown above, for line format click the line tool button, for Japanese candles format click the "candlesticks tool button".

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