What is the meaning of a Japanese candlestick?

While we discussed Japanese candlestick charting analysis briefly in the previous forex class, we'll now go over it in greater depth.

Let's start with a brief recap.

Trading in Japanese Candlesticks

When Godzilla was still a nice little lizard, the Japanese developed their own sort of technical analysis to trade rice back when he was still a cute little lizard. Rice, to be precise.

Traders were also hustling back then. You exchanged rice for rock ice.

Steve Nison, a Westerner who learned the secret technique known as “Japanese candlesticks” from a fellow Japanese broker, “discovered” it.

Steve did his homework, studied it, lived it, breathed it, ate candlesticks, and started writing about it.

In the 1990s, this hidden approach gradually gained popularity.

To cut a long tale short, candlestick charts may have remained a buried secret if it hadn't been for Steve Nison.

Mr. Candlestick is Steve Nison.

What are the characteristics of Japanese candlesticks？

Using a picture is the greatest approach to explain:

Japanese candlesticks may be utilised for any time period, whether it's a day, an hour, 30 minutes, or anything in between!

They're utilised to describe price movement over a specific time span.

The open, high, low, and close of the specified time period are used to create Japanese candlesticks.

• If the close is higher than the open, a hollow candlestick (typically white) is drawn; if the close is lower than the open, a full candlestick (usually black) is drawn.

• The “true body” or body is the hollow or filled component of the candlestick.

• Shadows are thin lines projecting above and below the body that show the high/low range.

• The “high” is at the top of the upper shadow, while the “low” is at the bottom of the lower shadow.