the Japanese candlestick chart get to
know the main chart patterns you
probably think that financial analysis
is complicated but it actually comes
down to two simple things reading charts
and reading news there are many types of
charts the Japanese candlestick or
simply candlestick are the most popular
ones such a chart consists of red and
green candlesticks or candles lined one
after another each candle gives you
detailed information about the price
movement within a specified time
interval in fact Japanese candlesticks
are the best way to visualize the ups
and downs of a price so that you can
spot potential opportunities to buy or
sell let's take a more detailed look
every candle consists of a body and one
or two tails call shadows sticking out
of it
the body indicates the range between the
open and closed price for a specific
time frame and the shadows represent the
highest and lowest price levels reached
for the set interval Japanese
candlestick charts are easy to read a
red candle shows that the price is going
down and a green one represents an
increasing price if you're looking at a
10 minute chart each candle represents a
10 minute time interval
[Music]
we see a green candle when the open
price is lower than the closed price if
the price closes lower than it opened
then the canned is read as simple as
that what kind of signals does a
candlestick chart provide it's no
surprise that Colonel stick charts are
so popular they're excellent for
spotting market turning points by
looking at the patterns that candles
create you could often guess if a
certain market is about to continue in
its current direction or reverse it
others that show that the market could
change direction are called reversal
patterns they could be bearish ones that
indicate the change from an uptrend to a
downtrend there should be perceived as a
signal to sell or bullish these show
that a price that has been decreasing is
likely to start going up and we should
buy let's see the most popular
candlestick patterns which encourage you
to buy bullish engulfing the bullish
engulfing consists of a red candle
followed by a bigger green one which
fully engulfs the red candle the pattern
is an indication for a market turning
point in simple words it's likely that
the market may start going up and you
can buy the indication is even stronger
if the green candlestick engulfs two or
three red candles hammer the name of
this candle is pretty much
self-explanatory you'll recognize the
hammer by its short body lower shadow
that is about two or three times the
length of a body and a shorter upper
shadow or no shadow at all the hammer is
usually a clear indication of a
declining price reversing its direction
and starting to go up so you can start
buying but just to be safe you could
always wait for additional confirmation
such confirmation is a green candle
closing above the open
the hammer for example morning doji star
this pattern appears when there is a
slight market movement and consists of
APRI candles a red one followed by a
doji followed by a green candle closing
beyond the middle of the first candle if
the green candle is longer than the red
one the signal is even more reliable
spotting the morning doji star is a
signal to buy some chant patterns that
mean you can sell bearish engulfing this
pattern is the opposite of bullish
engulfing a green candle is completely
engulfed by a following red candle when
he spotted you can sell as the sellers
on the market have possibly managed to
overpower the buyers and the price
direction could reverse dark cloud cover
the dark cloud cover appears before the
price drops down a long green candle is
followed by a red one but opens at a new
high and closes below the middle of the
green candle keep in mind that when
trading currencies a second candle
opening at a new high is rare so the red
candle usually opens at the close level
of the green one once you see this
pattern you can go ahead and sell or you
can wait for another smaller red candle
to form and confirm the dark cloud cover
shooting star the shooting star is a red
candlestick with a small body long upper
shadow and a short lower one when it
appears at the end of an uptrend it
shows you that you can sell since the
price which has been rising up to that
point may start falling instead see
reading Japanese candlestick charts is
not rocket science just make sure to
observe your chance carefully and you'll
soon learn to spot patterns as they form
for more free trading tutorials check
out trading - 1 - calm
you
know the main chart patterns you
probably think that financial analysis
is complicated but it actually comes
down to two simple things reading charts
and reading news there are many types of
charts the Japanese candlestick or
ones such a chart consists of red and
green candlesticks or candles lined one
after another each candle gives you
detailed information about the price
movement within a specified time
interval in fact Japanese candlesticks
are the best way to visualize the ups
and downs of a price so that you can
spot potential opportunities to buy or
sell let's take a more detailed look
every candle consists of a body and one
or two tails call shadows sticking out
of it
the body indicates the range between the
open and closed price for a specific
time frame and the shadows represent the
highest and lowest price levels reached
for the set interval Japanese
candlestick charts are easy to read a
red candle shows that the price is going
down and a green one represents an
increasing price if you're looking at a
10 minute chart each candle represents a
10 minute time interval
[Music]
we see a green candle when the open
price is lower than the closed price if
the price closes lower than it opened
then the canned is read as simple as
that what kind of signals does a
candlestick chart provide it's no
surprise that Colonel stick charts are
so popular they're excellent for
spotting market turning points by
looking at the patterns that candles
create you could often guess if a
certain market is about to continue in
its current direction or reverse it
others that show that the market could
change direction are called reversal
patterns they could be bearish ones that
indicate the change from an uptrend to a
downtrend there should be perceived as a
signal to sell or bullish these show
that a price that has been decreasing is
likely to start going up and we should
buy let's see the most popular
candlestick patterns which encourage you
to buy bullish engulfing the bullish
engulfing consists of a red candle
followed by a bigger green one which
fully engulfs the red candle the pattern
is an indication for a market turning
point in simple words it's likely that
the market may start going up and you
can buy the indication is even stronger
if the green candlestick engulfs two or
three red candles hammer the name of
this candle is pretty much
self-explanatory you'll recognize the
hammer by its short body lower shadow
that is about two or three times the
length of a body and a shorter upper
shadow or no shadow at all the hammer is
usually a clear indication of a
declining price reversing its direction
and starting to go up so you can start
buying but just to be safe you could
always wait for additional confirmation
such confirmation is a green candle
closing above the open
the hammer for example morning doji star
this pattern appears when there is a
slight market movement and consists of
APRI candles a red one followed by a
doji followed by a green candle closing
beyond the middle of the first candle if
the green candle is longer than the red
one the signal is even more reliable
spotting the morning doji star is a
signal to buy some chant patterns that
mean you can sell bearish engulfing this
pattern is the opposite of bullish
engulfing a green candle is completely
engulfed by a following red candle when
he spotted you can sell as the sellers
on the market have possibly managed to
overpower the buyers and the price
direction could reverse dark cloud cover
the dark cloud cover appears before the
price drops down a long green candle is
followed by a red one but opens at a new
high and closes below the middle of the
green candle keep in mind that when
trading currencies a second candle
opening at a new high is rare so the red
candle usually opens at the close level
of the green one once you see this
pattern you can go ahead and sell or you
can wait for another smaller red candle
to form and confirm the dark cloud cover
shooting star the shooting star is a red
candlestick with a small body long upper
shadow and a short lower one when it
appears at the end of an uptrend it
shows you that you can sell since the
price which has been rising up to that
point may start falling instead see
reading Japanese candlestick charts is
not rocket science just make sure to
observe your chance carefully and you'll
soon learn to spot patterns as they form
for more free trading tutorials check
out trading - 1 - calm
you
