Japanese Candlestick Anatomy

Let's have a look at how Japanese candle holders are put together.

Sexy Bodies

Like humans, candlesticks have different body sizes. And when it comes to forex trading, there's nothing worse than looking at the candlestick itself!

A long body indicates a strong buy and sell.

The longer your body, the stronger the trading pressure. This means that either the purcahser or the seller is stronger and in control.

Short bodies suggest next to no trading action. In trading jargon, bulls represent buyers and bears represent sellers.

Long white Japanese candles shows strong purchasing power pressure.

The longer the white candle, the higher the closing price will be.

This suggests that the purchaser was aggressive, with prices rising sharply between the opening and closing prices. In other words, the cop truly kicked the bear in the ass!

Long dark (filled) solidity is exhibited by candles selling pressure.

The more extended the dark Japanese candle, the further the close by is under the open.

This shows that costs fell a fantastic plan from the open and merchants were powerful. At the end of the day, the bears were snatching the bulls by their horns and body-pummeling them.

Mysterious Shadows

No, we're not looking at putting on dim smoky eye shadow.

The upper and lower shadows on Japanese candles give a lot of bits of knowledge about the trading meeting.

Upper shadows suggest the meeting high.

Lower shadows suggest the meeting low.

Candles with enlarged shadows show that trade occurred far after the opening and conclusion.

Japanese candles with short shadows propose that most of the movement of money happened close to the open and conclusion.

Assuming a Japanese candle has a long upper body shadow and a short bottom shadow, this indicates that buyers flexed their muscles and bid higher prices.

Regardless, for some reason, suppliers came in and drove costs down, bringing the social affair back close to its open expenditure.

Assuming a Japanese candle has a broad shadow at the base and a short upper shadow, it infers that dealers flaunted their washboard abs and forced the cost down.

Purchasers, on the other hand, emerged out of nowhere, and drove costs back UP, wrapping the meeting up close to the open cost.