#الدرس The Eighth:
#الشموع Japanese (Candlesticks) – The Basics of Analysis
#الفني ---
✅ What are Japanese Candlesticks?
Japanese candlesticks are a method of displaying price movement in the market over a specific time period (for example: one candlestick every 5 minutes or daily).
Each candlestick provides us with 4 important pieces of information:
1. *Open*: The price at the beginning of the period
2. *Close*: The price at the end of the period
3. *High*: The highest price reached
4. *Low*: The lowest price reached
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📊 Shape of the Candlestick:
- *Green Candlestick*: If the closing price is higher than the opening price (uptrend)
- *Red Candlestick*: If the closing price is lower than the opening price (downtrend)
- *Upper and Lower Shadows*: Represent the volatility between the highest and lowest prices
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🔥 Some Important Types of Candlesticks:
1. *Doji Candlestick:*
- Very small body
- Indicates indecision and unclear direction
2. *Hammer Candlestick:*
- Small body and long lower shadow
- Often appears at the bottom and indicates a bullish reversal
3. *Shooting Star Candlestick:*
- Small body and long upper shadow
- Often appears at the peaks and indicates a bearish reversal
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🧠 How can you benefit from them?
- Candlesticks give you early signals before a direction change.
- When you understand the shape of the candlestick and the place where it appeared (support or resistance), you can anticipate the next movement.
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In the next lesson, we will talk about support and resistance, stay tuned.