Candlestick Patterns Categories
There are three main categories of Japanese Candlestick Patterns.
- Bullish Reversal Candlestick Patterns.
- Bearish Reversal Candlestick Patterns.
- Continuation Candlesticks.
Bullish Reversal Patterns
Bearish Reversal Patterns
Japanese Candlestick Explanation
- Definition: Japanese candlestick is a price chart in trading platforms. They are used to display prices for a certain period. They are showing open, close, high, and low in a specific period.
- If the price closes above the open, then we have to buy a (long) candlestick. On our charts, it is a green candle.
- If the price closes below the open, then we have to sell a (short) candlestick In our examples it is the red candlestick.
- The center (filled part) is called the body.
- Thin lines up and down are called shadows.
- The upper shadow is high (the highest price reached in that period)
- Lower shadow represents low (the lowest price in that time frame).