Japanese Candlestick - Trusted Spots

Japanese Candlestick - Trusted Spots

Japanese Candlestick

 

Japanese Candlestick History:

As the name suggests, the candlestick originated from japan and the earliest use was from a rice merchant around the 18th century, but the western world traders were clueless about it. It is believed that sometime around the 1980's a trader named steve Nison discovered it accidentally and then wrote the first-ever book on candlestick named "Japanese Candlestick Charting Technique".

Japanese Candlestick Patterns:

Candlesticks are used to identify past trading patterns. Patterns help traders to set up a trade. The pattern is formed by combining two or more candlestick in a particular way to understand the story, but sometimes even a single candlestick provides a strong signal of market further movement.

Japanese Candlestick

So, candlestick can be used as a single or in a combination to understand the current market behavior and its possible future outcomes.

Japanese Candlestick Single Candlestick Patterns

1. Marubozu
2. Doji
3. Spinning tops
4. Hammer
5. Hanging man
6. Shooting star

Japanese Candlestick Combined Candlestick Patterns

1. Engulfing patterns { Bullish and Bearish } 
2. Harami { Bullish and Bearish }
3. Piercing pattern
4. Evening star
5. Morning star
6. Dark cloud cover

Candlestick patterns can assist a trader to take entry and to get out of traders.

NOTE- Candlestick patterns are only to assist a trader and to serve them, don't depend on the pattern formation totally because "different market conditions have different future outcomes irrespective of the same candlestick pattern formation".

Treat candlestick patterns as your servant, not the master, look for other market indications for successful trades.

SUMMARY:

• "Japanese Candlestick Charting Technique" oldest book ever written on Candlestick patterns.
• Candlestick patterns are of two types  " Single and Combination of two or more".
• Use candlestick patterns to solidify your trade decision, don't take trades only because of candlestick patterns.

NOTE: This article is not investment advice.

                                General risk warning: your capital is at risk

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