Japanese
Candlesticks Basics
Japanese candlesticks are the most popular charting methods among forex traders due to the highly informative structure and the ease of detecting established patterns.
Each candle
consists of four main points,
that is, high and low prices marking the tips of the candlesticks, and Open and close prices mark the body of
the candlestick.
If the real
body of a candlestick is filled
in black, it means that the close
price at that time was lower than the open
price. This is why the movement is bearish. On the contrary, if the
candlestick
real body is filled with white, it indicates that the closing price was
higher
than the open price. This is why the movement is bullish.
The thin vertical line above and/or below the real body is called the upper/lower shadow, representing the high/low price extremes for the period.