Topic: Japanese Candlestick Construction (Read 161 times)

You can also look into the Heikin Ashi overlay on the candlesticks. Green is an uptrend, Red is a downtrend and you can use it on any timeframe. There is a little calculation on how the candles are colored, sometimes 2 days are combined into one candlestick.

After a price reversal, it typically takes 2-3 of the same colored bars to confirm the trend.

dont rely too much on indicator, all of indicators are lagging indicator. it record the past price action. if you can read a candlestick graph chart. can read a current trend. current price action. there is a chance you can predict where the next price. if you are usng indicator, use it for just second opinion. just for advice only


yeah candlestick pattern is verry useful. especially on higher timeframe like 4H above, the basic you need to learn is how to spot support and resistance (price action). what time the volatility  become high, what is the best time to make a posittion in the market,
thanks for giving a source  i will try to look for it.

In addition to the OP analysis of Japanese candlesticks there are some notable patterns when formed at a support or resistance zone will signals a potential reversal of the price, examples includes Bullish engulfing bar BUEB, bearing engulfing bars BEUB, pin bar and hammers.
With reference to  BTC/USD daily timeframe chart on 21/02 and 06/03 are two examples of Bearish engulfing bars formed at a strong resistance and both signals triggers selling of btc.

I did not find anything with the site you gave me, I was curious to learn the candle stick.
I'm not sure this will increase my trade in crypto. I think this kind of trick applies only to forex and binary.

If you want to learn candlestick pattern it is best for trading because if you analysis candlestick and you can get a best solution for your trading. If you want to learn you must visit babypips.com you can get a best tips for you Japanese candlestick construction. This is a best for trading calculation so don't miss just check this site hope you must like this site tips.

Candle stick is just a parameter go behind price action of the market, so i just use it to analyze market in the past, but to decide taking an order, we need an indicator go before price action as RSI.
Anw, there are many candle stick models, thanks for your construction

Japanese Candlestick is one of many type that can use to learn and to read a price chart or graph. Many traders use this type because it is easy to read unlike the others type. A tool to describe the price movement during the given time frame. This is useful when you are new in trading. many newbies dont know how to read a candlestick. This is verry useful in higher timeframe in only one candlestick you have a higher chance to predict what happen next. you can spot the revesal period or continous period.

This is the japanese candlestick construction



As you can see at the image there are the parts of the candlestick

What is Open:
this is the opening or start of the price for that specific timeframe

What is Close:
this is the closing or end of the price for that specific timeframe

What is Low:
this is the lowest price recorded for that specific time frame

What is High:
this is the highest price recorded for that specific time frame

What is Wick:
this is the line found on a candlestick the interpret the fluctuation of price relative to opening and close price. The end of wick is the highest or lowest of the price for the specific time frame.

What is Bullish candle:
it indicate a buying pressure

What is Bearish candle:
it indicate a selling pressure

What are the advantages of Japanese candlestick:
*Contain unprocessed and raw data about the market sentiment.
*Provide unique insight on the relationship between buyers and sellers.
*Give early signal of potential market turns.