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Forex : Japanese Candlesticks Shapes

We now explain candlesticks shapes that you can see on currency chart that trade,and you'll know the meaning of that candle and why is formed and what the candle tell us from the expectation of next movement of market

Remember : When past candle closed and new candle moves up and down on the chart it will be one of below

: Doji Candlesticks Group

Doji Candlestick is a candle hasn't color and hasn't red or green color , it's seem like a cross -

Candlestick without body or has very small body -

The Tall of the highest and lowest shadows of the candlesticks are different according market -

Open price equals close price or near from it -

Dojie Candlestick doesn't expect anything but if this candlestick appeared the technical trader link it -

with previous trend candlesticks to determine his expectations of next movement of market

Doji Candlesticks

? How To Use Doji Candlesticks in Technical Analysis

Doji Candlesticks Group tell us the Supply and demand begin equal or convergence and the -

expectation is possibility changing the previous trend

Please remember: Doji Candlestick it's not enough to change the trend and the Dojie candlestick alone doesn't expect anything so we must link it with the previous trend

: Candlesticks With Small Bodies Shapes

: Candlesticks With Big Bodies Shapes

: Blending Candlesticks

: Blending Candlesticks are formed from

One candlestick with previous Candlesticks or previous trend -

Blending of candlesticks With each other with linking with previous trend and through linking-

the open price of the first candlestick with close price of next candlestick , and linking of the lowest price of the first candlestick with the lowest price of second candlestick

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What's The Meaning of This Candlestick?

Candlestick shape not reflect chain of events between open price and close price , it's not like line chart which explain the volatility of price movements , but the candlestick shows the relation between open price and close price during a period of time , but regarding the highest price and lowest price for a candlestick , it's shown in ashape of candlestick shadows

: Candlestick Function

Each candlestick reflect a period of time of trade , and tell us the battle that happen between the buyers and sellers during that moment or what we know as chart frame period

Candlestick bottom represents the lowest level for price sellers could reach it

Candlestick top represents the highest level for price buyers could reach it

.Each candlestick expects the next movements for price

: Note

If price closed near the highest level of prices that's mean the buyers won by showing green candlestick

If price closed near the lowest level of prices that's mean the sellers won by showing red candlestick

: Candlestick Story

As soon as the candlestick closed in a period of time , new candlestick begins to appear , We have already said the candlestick reflect a period of time, maybe candlestick for 1 minute or 5 minutes or 15 minutes or 60 minutes or 2 hours or 4 hours or 1 day or 1 week or 1 month candlestick ,and the choice is yours as analyst on currency pair chart that you trade

It's mean you see the last candlestick on your right hand of the chart because it's reflect the period of time that you trade in it ,and the candlestick be animated but the past candlestick be fixed because it closed and showed the data like open price , close price , the highest price and lowest price , and this candlestick is fixed and we know it shape and it name we expect what will happen for the animated candlestick now and the next candlestick too ..and will it be red or green

If we open candlesticks chart for one minute period , that's mean each candlestick reflect about trade happened for one minute , and closed at the end of minute and new candlestick opened with each passing minute

Japanese Candlestick Chart Functions

Candlestick charts is the best chart to get positive results for technical analysis of currencies

Candlestick charts translate the market and give good expectation for next stations for currencies prices

Used in marking pips transformation of market trend if it's bearish or bullish

Candlesticks have shapes and names like hammer, shooting star and hanging man ...ect , all are very useful to expect and sense the next market movements

: Candlesticks Bodies and Shadows

: First : Candlesticks Bodies

Candles like a humans have bodies and different sizes , and for Forex trading the most thing make the trader tired is "candlestick body examination" but wait It's not difficult here with us

: Long Bodies Candlestick

Long Bodies Candlestick mean to "the buy" or "the sell" with large volume , and the activity of the trading which happened was big activity which make candlestick body is long

: Short Bodies Candlestick

Short Bodies Candlestick mean to"the buy" or "the sell" with simple volume , and the activity of the trading which happened was little which make candlestick body is short

Here New Term Appears ... The Bulls and The Bears

Bulls mean " Buyers" or " Bullish" in Forex trading

If candlestick colored in green that's mean there're more buy deals ,cause is the close price for the candlestick become above of the open price and that's mean currency price is rising , analysts say in this case the bulls kicked the bears

Bears mean "sellers" or "bearish" in Forex trading

If Candlestick colored in red that's mean there're more sell deals , cause is the close price for the candlestick become under of the open price and that's mean currency price is falling , analysts say in this case the bears caught the bulls horns

: Second : Candlestick Shadows

Most of Candlesticks have shadows , these shadows provide us important analysis ideas about the market

: High Shadow

High shadows show that the trading was on the highest price during a period

If candlestick has high shadow that's mean the buyers were strong and pushed the prices to high but for some reason the sellers caused prices falling again to close the deal near the open price

: Low Shadow

Low shadow show that the trading was on the lowest price during a period

If candlestick has low shadow that's mean the sellers were strong and pushed the prices to low but for some reason the buyers caused rising price again to close the deal near the open price

If th candlesticks have high and low shadow that's mean the buyers and the sellers are reluctant and almost if this candlestick showed it's reflect the previous trend

: Long Shadows

If candlestick has long shadow whether up or down that's mean the previous deals were very good and it achieved big profit

: Short Shadows

When the shadow is short up or down that's mean that's the previous deals were confined between the close price and open price and the profit was small

Japanese Candlestick Chart

This choice is provided in Metatrader program

: We can choose it as below in the picture

?What is Japanese candlestick chart

Analysts in Japan innovate candles charts from many centuries ago , and these charts have evolved lately , Many traders think the Japanese candles chart learning is very complex more than learning other Charts and difficult to understand candlestick charts

, But the true if you study candlestick chart well , it will give you best general view point to read the market

Shape of Candlestick Chart

: Chart Benefits

Candlestick charts give you all the data about the price in graphical formula better than any other charts

: Candlestick Formation

Open Price : is the start of deal for the candle

High Shadow : is the highest shadow or called the highest price for the candle

Low Shadow : is the lowest shadow or called the lowest price for the candle

Close price : is the end price of the deal

Real Body : is candle trade between open price and close price

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: In Income

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: In Spending

If you buy what you don't need , the time will come which sell what you need

: In Saving

Don't save what remains from spending but spend what remains after saving

: In Risk

Don't test the depth of the river with both your feet

: In Investing

Don't put all your eggs in one basket

: In Expecting

The Secretariat is a precious gift , don't expect it's exist in all people

OHLC Chart Or Bars Chart

This chart is provided in Metatrader program

: You can choose as below in the picture

? What is OHLC chart or Bars chart

Probably that the bars chart is the most used from the traders in technical Forex analysis market , because it not gives us closing price only but gives us too

Open price

Close price

The Highest level of currency pair

The lowest level of currency pair

Bars Chart

: Used in

The Bars chart used in (determining entry point in the deal) whether the entry is buy or sell , it's perfect tool for this work

: The shape of the chart

The shape is a plugged line from close price to new close price

: Chart Benefits

ِA glance in bars chart we can feel how much investors who trade with this currency and their general feelings towards it

Red Bar : Sell Deal

Blue Bar : Buy Deal

Open : Open price in the deal

Close : Close pric in the deal

High : The Highest level of price

Low : The lowest level of price

Forex : Line Chart

This chart is available in Metatrader program , you can choose it as below in picture

? What is Line Chart

Line chart is the most chart viewed before in many times

: Used in

Using always in clarifying closing price data on the chart

: Shape of the chart

Plugged into the line from closing price to new closing price constantly

: Line Charts Benefits

If we follow the price movements on the chart for a period we can determine the places of resistance and support for the prices by drawing called channels

I will explain the resistance and support and the channels in next articles -

This chart is good for expecting price trend not the point of buying or selling -

Technical Analysis and Reading The Charts

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: Technical Analysis

Here you will know a new secret from secrets of analysis Forex market it's the technical analysis for currencies charts

These charts will give you best perspectives to expect the market , and you should know that charts are displayed in the form of a time frame , the charts represent price movement for month or week or day or 4 hours or 1 hour ...ect we will explain it later

: There are many kinds of charts

Line Chart

Bar Chart

Candle Chart

Point and Figure Chart

Mountain Chart

Dot on Close

Kagi Chart

Renko Chart

Heikin Ashi Chart