A comprehensive educational series for all beginners (Be Successful)
Japanese Candlesticks are
one of the most important tools for technical analysis in financial markets (Forex, stocks, cryptocurrencies, commodities). They originated in Japan hundreds of years ago for rice trading and have become the most common way to display price movements.
Components of a Japanese candle
Each candle represents price movement over a specific time period (minute, hour, day, week...).
Body: The difference between the opening price and the closing price.
Green (Bullish): Closing is higher than opening → Buying strength.
Red (Bearish): Closing is lower than opening → Selling strength.
Upper Shadow: The highest price reached during the period.
Lower Shadow: The lowest price reached.