Candlesticks books Understanding CandleSticks

Candlesticks books Understanding CandleSticks

“Japanese candle� is a design that displays the characteristics of changes in the price of a traded instrument over a certain time interval. Invented in the 18th century in Japan, a candle is a rectangle, segments can be attached to the midpoints of the upper and lower faces of it.

Many candlesticks books has been published ever since then which helps in a deeper understanding of studying and using the Japanese candlesticks.

Each element of this graph reflects the nature of price fluctuations in one of the same time intervals determined by the selected timeframe.

The position of the free end of the upper shadow of the candle corresponds to the maximum (high) price reached by the instrument in a given period of time. In turn, the free end of the lower shadow indicates the minimum (low) price of the current time interval.

One of the horizontal faces of the candle body is located at the level of the open price (open), and the other is at the level of the close price (close) of this time period. If we are talking about the last candle of the chart, that is, a candle corresponding to an unfinished time interval, then in this case one of the faces of the candle body at each moment of time is at the level of the current price of the instrument.

If the closing price of the candle is above the price of its opening, then the candle is called rising or “bullish”. If, on the contrary, the opening price is located above the closing price, then such a candle is called falling or “bearish”. The bodies of all bullish candles are painted in one color, while the bodies of all bearish candles are painted in another. Trading terminals, as a rule, allow you to choose any pair of fill colors for Japanese candles, but traditionally traders prefer white color for bullish and black for bearish candles. Also, the option is often found when growing candles are painted in green, and falling ones – in red.

Today, candlesticks are the de facto standard for most trading platforms and monitoring systems. They deserve such popularity due to their informativeness and ease of presentation of information on market trading. This is a truly advanced tool for forecasting market trends, all the advantages of which Western traders were able to appreciate only at the beginning of the last century. We are allowed to enjoy all the benefits of a wide Japanese heritage at absolutely no cost. Japanese candles are in today’s material.

Japanese Candlestick books Beyond Candlesticks – Steve Nison Candlesticks Book This candlesticks book is not ideal for starting with candlesticks. The basic notions are not developed. On the other hand, it is a work of deepening of first order. The author also addresses the issue of optimizing trading with candlesticks, possible methods and the use of moving averages.

The second part of this candlesticks book deals with three other Japanese techniques of graphical analysis: the three-line breaking method, the Renko graphs and the Kagi graphs.

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