My Economy Guide will explain in detail what Japanese candlestick charts can point to and give us clues. Japanese candlestick chart is one of the most important indicators in short-term trade. Therefore, it is necessary to know and understand the interpretation of candlesticks in the best way. Japanese candlestick charts, in other words candlesticks, generally have a rectangular, red or green body. Shadows emerge from the lower edge and upper edge of this body.
STRUCTURE OF CANDLE STOCKS
A green candlestick indicates an increase in price. The lower edge of the body of this candlestick represents the opening price in the period used, and the upper edge of the body of this candlestick is the closing price in this period. If this bar has a shadow on its upper edge, it is understood that the price has risen to higher levels, but cannot hold at these levels but has fallen to the closing level or below the closing level. In other words, the maximum point of the upper shadow of the candlestick is the maximum value that the price can reach in that period. The lower shadow indicates that the price falls below the opening value from time to time, but increases above the opening level over time. In other words, the bottom of the drop shadow indicates the minimum level that the price has reached.
A red candlestick indicates a drop in price. The opening point of this candlestick is represented by the upper edge of the body and the closing value at the end of the period is represented by the lower edge of the body. Note that this is opposite to the green candlestick. The upper shadow of the red candlestick indicates the higher values reached in that period and the lower shadow indicates the minimum values reached in that period.
SHORT GREEN CANDLE STICK
The short green candlestick shows a small increase over a period of time. Its body is short and its shadows are relatively long.
He cannot give a healthy information by himself. The adjacent candlesticks should be examined and followed.
GREEN CANDLE STICK
The green candlestick shows the increase over a period of time. This increase is higher than the short candlestick. The body has an average paint. The length of the shadows can be variable.Although it may indicate an increase in prices, it cannot provide information alone. While it is possible for the trend to continue, it is also possible that the trend will change direction. Carefully examine the candlesticks next to it.
LONG GREEN CANDLE STICK
The long green candlestick indicates a strong increase over a period of time. The body is long, the shadows are shorter than the body.It shows a significant increase in prices, but it cannot give enough information alone. The long green candlestick after the bearish trend may indicate an upward trend after the support point. If it occurs after the upward trend, it may indicate that prices have gone up too high and a possible decline. However, as we mentioned before, it cannot give enough information alone.
Green marubozu tells us that the prices are too high. It has a long body and has no shadows. Shows a strong increase in prices. It is understood that there was no decrease below the opening price and that the maximum value reached was closed during this period. The presence of Green Maruboz means that buyers are very effective in the market. If it is seen after the uptrend, it may indicate an excessive increase in the market and the possibility of a downtrend starting, while it may indicate a strong uptrend in the event of a downtrend. As with other bars, other candlesticks should be checked for a healthy analysis.
SHORT RED CANDLE STICK
The short red candlestick indicates that prices have gone down slightly over a period of time. Its body is shorter than other bars. Its shadows are relatively long.He alone cannot give enough information. The candlesticks next to it should be carefully examined.
RED CANDLE STICK
Red candlestick indicates a decline in prices. The short red indicates a stronger drop than the candlestick. Its body is of average length compared to other bars. The length of the shadows may vary.While it may indicate that the downward trend in prices may continue, it may also indicate the possibility of entering an upward trend. The bars next to it should be carefully examined. He alone cannot give enough information.
LONG RED CANDLE STICK
The long red candlestick indicates a significant drop in prices. Its body is longer than other bars. The shadows remain relatively short compared to the body.It represents a strong fall in prices, but it cannot give enough information alone for later. After the uptrend, income may indicate that the downtrend has started. If it is seen at the end of a long downtrend, it may indicate panic sales and that it may enter an increasing trend after these sales. However, as we said, it does not provide enough information for an accurate prediction. The bars next to it should be carefully examined.
Red marubozu tells of a strong decline. Its body is longer than other candlesticks. No shadows.Indicates a strong decline in prices. Prices have fallen since the opening of the period discussed and closed at reaching the minimum value at closing. It shows that sellers are very active in the market during this period. Red maruboz, which emerged when the resistance point reached as a result of the uptrend, may indicate that the downtrend will start; the red marubozu, which emerged at the end of a long downtrend, may represent the latest panic sales that may have occurred before the upward trend. However, red marubozu alone can not give the necessary and sufficient information. It should be examined together with other candlesticks.
The Doji star indicates that the opening price and the closing price are the same in a given period, or that these two prices are very close to each other. It has no or very small body. Shadow lengths vary. It means that there is no change in prices and that the purchase and sale in the market is almost in balance. The Doji star is one of the most important forms to consider when interpreting Japanese candlestick charts . The doji star, which emerged after the ascension trend, heralds the weakening of purchases and the trend may change. This should also be confirmed by candlesticks after a dose. The doji star, which emerged after the downtrend, may indicate a weakening in sales and a trend change. This should be confirmed by subsequent candlesticks.
The umbrella indicates that the opening price and the closing price are equal. It has no body and upper shadow. However, it has a long drop shadow.Although the umbrella shows the price equilibrium, there is an instant decline in this period due to the long tail, but finally the closing price is equal to the opening price. The umbrella seen at the support point may indicate an upward rotation from the lower levels or an umbrella seen at the end of the rise may indicate a trend change.
The reverse umbrella indicates that the opening price and the closing price remain the same. It has no body and drop shadow. The upper shadow is long.Although the reverse umbrella shows that the opening price and the closing price remain the same, the long shadow of the upper shadow indicates that buyers have played a more active role in the period examined. The reversal trend seen after the downtrend has strengthened and the trend may change; The upside trend seen after the reverse umbrella may indicate that the trend may change. Disclaimer:This article describes Japanese candlestick charts and what they might mean. Said signs and signals are likely to occur and are not precise. This article cannot be treated as investment advice.