Stock Trading Japanese Candles

Stocks Trading with Candlestick

Brief History

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

They were used by legendary rice trader to predict future market stock prices. After dominating the rice market, Munehisa eventually moved to the Tokyo exchanges where he gained a huge trading fortune using this analysis. He is said to have made over a hundred consecutive winning trades.

Types of Stocks Trading charts

There are 3 types of charts used in Stock: Line, bar & candles.

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

Bars- displayed as sequence of OHCL bars. OHCL represents OPEN HIGH LOW and CLOSE. The Opening stocks price is displayed as a horizontal dash on the left & closing stock 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 - Japanese Candlestick Stock Charting Techniques - these use the same stocks price data as bar stock 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 Japanese Candlestick Stocks Charting Techniques

Rectangle part 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) - Stock Prices moved up
• (Red Color) - Stock Prices moved down

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

Candle Sticks Vs. Bar Stocks Trading Chart

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

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

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

Drawing japanese Candlesticks Stocks Charts in MetaTrader 4 Software

To draw these on the MT4, select the MetaTrader 4 charts drawing tools within the "MT4 Toolbar" - shown below.

To view this tool-bar on MetaTrader 4 navigate to 'View' Next to file at the tops 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 toolbar, 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 displayed above, for line format click the line tool button key, for Japanese candles format click "candlesticks tool button key".

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