Japanese Candlesticks

Friday, September 20th 2013. | Learning, Strategy

Japanese candlesticks give better view and perspective to predict market price action than bar charts. Intraday charts using japanese candlesticks patterns are not suitable for entry and exit strategies. You can see the different between candlesticks and bar chart.

candlesticks chart sample

bar chart sample

The different between candlestick and bar chart

bullish bearish candle

bullish bearish bar

Candlestick patterns very reliable on all time frames. There are patterns like evening stars, morning stars and haramis very rare in intraday trading. They need gap between the close of one candle and the open of other candle. Gaps will show when the open of the following candle does not equal the close of the earlier candle.

gap candlestick

We can use morning stars and evening start candlestick pattern without gap. From the ideal formation that usually formed by sudden price movements as the chart is updating, ideally the close of the previous candle should line up exactly with the next open candle.

Previous Lesson: Forex Trading Platforms

Next Lesson : Candlesticks Patterns

tags: , , , ,