Japanese Candles Patterns Explained - All Candles Patterns Tutorial
Bullish Candlestick Patterns & Bearish Candles Patterns and Continuation Candle Patterns
Brief History
Candlesticks were created in the 18th century by the legendary rice trader called Homma Munehisa to give the overview of the opening, high, low & closing market price over a given period of time.
They were used by the legendary rice trader to predict future market prices. After dominating 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 a hundred consecutive winning trades.
Types of Forex Trading charts
There are Three types of charts that are used in Forex: Line, bar and candlesticks.
Line - plots a continuous line connecting closing prices of a currency pair.
Bars- displayed as sequence of OHCL bars. OHCL represents OPEN HIGH LOW and CLOSE. The Opening price is displayed as a horizontal dash on the left & closing 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 - Best Candlesticks Tutorial - these use the same price data as bar charts (open, high, low, and close). However, they are displayed in a much more visually identifiable way which looks like a candlestick with wicks on both its ends.
How to Interpret Best Candlesticks Guide
The rectangle section is called the body.
The high & low are described as shadows & plotted as poking lines.
The color is either blue or red
- (Blue or Green Color) - Prices moved up
- (Red Color) - Prices moved down
Most trading platforms like the MT4, use colors to mark the direction. Colors used are blue or green: when price moves up, red: when price moves down.
Candle Sticks Vs. Bar Chart
When candles are used it's very easy to see if the price moved up or down as opposed to when a bars are used.
The Best Candlesticks Book also have very many formations that are used to trade the FX market. Best Candlesticks Book - candlesticks patterns have different technical analysis explanation and the most common Best Candlesticks Tutorial are:
| Reversal Patterns |
The above Best Candlesticks Tutorial and Patterns is what makes the Japanese candles patterns popular among forex technical traders & it is why this type of forex analysis are the most widely used when it comes to analyzing the FX market. The analysis for these Japanese candlesticks pattern formations in Forex trading is the same as that one used in stocks trading - Best Candlesticks Book.
Drawing japanese Candlesticks Charts in MetaTrader 4
To draw Candlestick Charts on the MT4, select the MT4 charts drawing tools within the "MT4 Toolbar" - shown below.
To view this toolbar in MT4 go to 'View' Next to file at the tops left corner of the MT4 Platform, Click 'View', Then Click 'Toolbars', Then check 'Charts' Button Key. Above Charts toolbar will appear.
Once the above toolbar, 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 chart tool button as shown above, for line format click the line chart tool button key, for Japanese candles format click "candlesticks chart tool button".
All Candles Patterns Tutorial. Candles Patterns Technical Analysis Explained - Trading Candlesticks Patterns. Bullish Candlestick Patterns & Bearish Candles Patterns and Candlestick Continuation Patterns Tutorial - How to Read Candlestick Chart for Day Trading
