The Basics of Japanese Candlesticks
June 9, 202112:00 pm1 hourEach candlestick represents a data set of the complete price action during a selected time frame. The time frame could be anything from a few minutes to a month. In the diagram above you can see a green candle and a red one, both having wicks at either end. Actually the main body of the candle (the green or red solid areas) represents the relationship between the open and close prices of the period. The upper wick in each case represents the high and the lower wick represents the low price of the period.
If the close price is higher than the open, the body of the candle is usually green. Please note that depending on the color settings of your trading platform it could be white also. If the close is lower than the open, the body is usually colored red but again if the previous one is white then it would be black. The thin lines, the ‘wicks’, are drawn to represent the high-low trading range for the period.
John is an active trader and educator at JustLearn Academy with an MBA in Finance from New York University. He began trading in 1995 focusing mainly on commodities and options, then transformed into forex investment. His current specialization covers all aspects of cryptocurrency and digital asset trading utilizing fundamental and technical analysis, namely chart pattern analysis. Mr. Roman has conducted training seminars on all over the world from novice to innovative strategies. He provides a solid, collaborative and extremely encouraging training atmosphere to assist traders in locating and trading momentum moves, using confirmed patterns and methods.