Japanese Candlestick Charts: Money and Currency Analysis

An obscure sounding thing is one of the relatively new forms of technical analysis of the currency markets.

But just what is this thing called Japanese candlestick charts?

Well basically they refer to what is actually one of the oldest forms (contrary to the prevailing opinion at the start of this article).

Basically they are used to mark a candlestick between the open and close price. If it goes up then the candlestick is left white which shows bullishness overall, but if the other way it goes black.

These then look a bit like a candlestick to someone with a rather poetic imagination perhaps.

The wicks at the top and bottom called the shadows refer to the highs and lows in that day.

Now this probably is not making a lot of sense because really you need to see some diagrams which we don't have here, so the recommendation for those who are particularly interested in the Japanese candlestick chart is to get a textbook that explains them in more details with diagrams to see what each thing is, and for instance what the term known as a 'doji' is!

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