Japanese Candlestick Patterns



The Japanese candlesticks are an easy-to-interpret type of chart used in technical analysis by stock traders, forex brokers and traders, and traders of other financial instruments. There are various models and patterns with exotic names like doji, harami or marubozu which when combined with a preceding trend and other candlesticks form patterns that can help you see where the market might be headed to. The Japanese candlesticks are a good means for identifying areas of possible trend reversals.

Nonetheless, and here are a few words of warning for forex traders, many of the candlestick patterns presented here are characterized with gaps and are mostly used by stock traders. As you know, in forex trading you don’t see as many gaps as you can see in the stock market. That is because best forex broker trading is continuous except for the weekend and holidays, so, basically, only Monday is the day that could open with a gap up or a gap down. Therefore, if you intend to use Japanese candlestick patterns in your trading analysis, be more creative in interpreting them, and always make sure you get confirmation from indicators like MA lines, MACD, RSI, etc. and/or support/resistance lines.

Here is what a Japanese candlestick looks like and what each of its parts is called:

Japanese Candlesticks

Japanese candlestick explained

Foreign exchange forecast is basically a currency analyst's view of whete the forex market is going. Such professionals tend to have a Blog Forex where, in addition to their regular posts about what's happening in the forex market, they might give you the so-called No-deposit Forex bonus offers. Regardless of whether you're trading with Oanda or Saxo Bank, candlestick pattern reading is an important skill