babypips

Elementary Japanese Candlesticks

Summary: Japanese Candlesticks

We’ve covered a lot about Japanese candlesticks.

Partner Center
Find a Broker

Hopefully, you’re not at wick’s end but are actually

now fired up about candlestick charts.

Advertisement

Maybe we’ve even ignited a flame that becomes a lifelong

passion for Japanese candlesticks.

Best MT4 Broker

TRADE NOW
with lowest cost
Let’s summarize what you’ve learned about Japanese candlesticks:

If the close is above the open, then a hollow candlestick (usually

displayed as white) is drawn.
If the close is below the open, then a filled candlestick (usually

displayed as black) is drawn.

The hollow or filled section of the candlestick is called the “real body” or
body.

The thin lines poking above and below the body display the high/low
range and are called shadows.

The top of the upper shadow is the “high”.

The bottom of the lower shadow is the “low”.

Long bodies indicate strong buying or selling. The longer the body is, the
more intense the buying or selling pressure.
 Advertisement

Short bodies imply very little buying or selling activity. In street forex lingo,
bulls mean buyers and bears mean sellers.

Upper shadows signify the session high.

Lower shadows signify the session low.

Advertisement

There are many types of Japanese candlestick patterns, but they can be
categorized into how many bars make up the candlestick pattern.

There are single, dual, and triple candlestick formations.

The most common types of Japanese candlestick patterns are the

following:

NUMBER

OF JAPANESE CANDLESTICK PATTERN

BARS

Single Spinning Tops, Dojis, Marubozu, Inverted Hammer, Hanging Man, Shooting Star

Two Bullish and Bearish Engulfing, Tweezer Tops and Bottoms

Three Morning and Evening Stars, Three Black Crows and Three White Soldiers, Three Inside Up and Down

Just refer to the Japanese Candlesticks Cheat Sheet for a quick reference
on what these candlestick patterns mean.

Combine candlestick analysis with support and resistance levels for the
best results.

And finally, here are some words of wisdom:

Just because Japanese candlesticks hint at a reversal or continuation, it doesn’t mean

it will happen for sure! You must always consider market conditions and what price
action is telling you.

This is the forex market and nothing is set in stone!

And if you’re looking for a more in­depth look at Japanese Candlesticks,

you can’t go wrong with the book, Japanese Candlestick Charting: A
Contemporary Guide to the Ancient Techniques of the Far East. It’s written
by the man himself, Steve Nison.

Upgrade to Babypips Premium! Unlock exclusive content that will help prepare you for the
upcoming trading week. Subscribe today and save 20% with an annual subscription!

Next Lesson
Fibonacci Trading
 What lies in our power to do, it lies in our power not to do.Aristotle

Learn Forex

How to Trade Forex

Forex Quizzes
Forex Forums
Forex Glossary
Forex Margin 101
Technical Analysis 101
Risk Management 101

Forex Tools

MarketMilk™
Economic Calendar
Risk­On / Risk­Off Meter
Position Size Calculator
"Back to Breakeven" Calculator
Pip Value Calculator
Pivot Point Calculator

Company

About
Contact
Advertise
Newsletter
Testimonials
FAQ
Subscribe
Babypips

Facebook
Instagram
Twitter

Babypips helps new traders learn about the forex and crypto markets without falling asleep.

We introduce people to the world of trading currencies, both fiat and crypto, through our non­drowsy educational content and tools.
We're also a community of traders that support each other on our daily trading journey.

Copyright © 2024 BabyPips.com LLC. All rights reserved.

Privacy Policy
Risk Disclosure
Terms of Use
Privacy Manager