Support and Resistance Levels
To start your education on technical analysis, let's begin with the basics: support and resistance!
- Fibonacci Trading
- How to Use Fibonacci Retracement to Enter a Trade
- Fibonacci Retracements are NOT Foolproof
- How to Use Fibonacci Retracement with Support and Resistance
- How to Use Fibonacci Retracement with Trend Lines
- How to Use Fibonacci Retracement with Japanese Candlesticks
- Using Fibonacci Extensions to know when to take Profit
- Using Fibonacci Extensions to determine the stop to lose Less Money
- Summary: Fibonacci Trading
Popular Chart Indicators
- How to Use Bollinger Bands?
- HOW TO USE THE MACD INDICATOR
- How to Use Parabolic SAR
- How to Use the Stochastic Indicator
- How to Use RSI (Relative Strength Index)
- How to Use ADX (Average Directional Index)
- Ichimoku Kinko Hyo
- Trading with Multiple Chart Indicators
- What is the Best Technical Indicator in Forex?
- Summary: Popular Chart Indicators
Summary: Japanese Candlesticks
As you have been explained in detail about Japanese Candlesticks, it’s time to
summarize what you have known about this Japanese way of analyzing forex
Japanese Candlestick, an ancient Japanese rice traders’ tool, is a method used to
determine price movements through patterns. Each candlestick is formed by open-
close and high-low in a given time period.
Key Points –
• If the close of a given time period is above its open, a hollow candlestick is
drawn. Sometimes, a hollow candlestick is referred to as white candlestick.
• If the close of a given time period is below its open, a filled candlestick is
drawn. Usually, such candlesticks are filled with black color.
• The black or white/hollow filled parts of candlesticks are known as ‘Real
• Vertical thin lines situated above and below the real bodies are called shadows
or wicks. They represent the highs and lows during a timeframe.
• The top of the upper shadow is called ‘High’ and the bottom of the lower
shadow is called ‘Low’.
• The length of the body helps in determining the intensity of the buying or
selling. The longer the body, the more intense is the selling or buying at Forex and
smaller bodies represent the low frequency of buying or selling.
• In Japanese Candlesticks, lower shadows represent low sessions and upper
shadows signify high sessions at FX.
• In terms of Forex vocabulary, bears mean sellers while bulls represent the
Japanese Candlesticks have three kinds of patterns – Single, Double and Triple
candlesticks. These candlestick patterns get drawn depending upon the ongoing
market scenarios. One important thing for all traders and especially for the
newbies at FX – never follow the Japanese candlesticks solely. FX scenarios change
very quickly and a trader should consider these patterns along with other market