Japanese Metals Candles Patterns Metals Technical Analysis
Japanese Metal Candle Patterns TutorialBrief History
Candle-sticks were developed in the 18th century by the legendary rice trader called Homma Munehisa to give an overview of the opening, high, low and closing market metals price over a given period of time.
They were used by the legendary rice trader to predict future market metals prices. After dominating in the rice market, Munehisa then eventually moved to the Tokyo exchanges where he then gained a huge fortune using this trading analysis. It is said that He made over hundred consecutive winning trades.
Types of Metal charts
There are 3 types of charts used in Metals: Line, bar & candles.
Line - plots a continuous line connecting closing metals prices of metals.
Bars- displayed as sequence of OHCL bars. O H C L represents OPEN HIGH LOW & CLOSE. The Opening metals price is displayed as a horizontal dash on the left & closing metals 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 - these use the same metals price data as bar metals charts (open, high, low, & close). However, they are displayed in a much more visually identifiable way which resembles a candlestick with wicks on both its ends.
How to Analyze
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) - Metals Prices moved up
- (Red Color) - Metals Prices moved down
Most trading platforms like the MT4, use colors to mark the direction. Colors used are blue or green: when metals price moves up, red: when metals price moves down.
Candlesticks Vs. Bar Metal Chart
When candlesticks are used it is very easy to see if the metals price moved up or down as opposed to when bars are used.
The Japanese techniques also have very many formations that are used to trade the Metals Trading market. These patterns have different technical analysis interpretation & the most common are:
The above patterns is what makes the Japanese candlesticks popular among technical traders & it is why this type of analysis are the most widely used when it comes to analyzing the metal trading market. The analysis for these pattern formations in metals trading is the same as that one used in metal trading.
Drawing These Charts in MT4 Software
To draw these on the MT4, select the charts plotting tools within the "MT4 Toolbar" 512 - shown below.
To view this tool-bar on MetaTrader 4 navigate to 'View' Next to file at the top left corner of the MT4 Platform, Click 'View', Then Click 'Tool bars', Then check the 'Charts' Button. The above toolbar 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 tool button key as shown above, for line format click the line tool button, for Japanese candles format click the "candlesticks tool button key".
