Japanese Candlesticks

Japanese Candlesticks

If you want to become a successful trader you need to learn the art of applying Japanese candlesticks to your trades.  When you combine individual Japanese candlesticks together you get what are commonly called candlestick patterns. These patterns provide clues as to the direction price might take next.

When it comes to making attempts to predict where price may move to next we need as much information about price as we can possibly get.  We need pertinent information that is important to right now and in the future. This is where Japanese candlesticks combine to form predictable patterns that foretell what is likely to happen at least for the short term.

For example.  Here we have a series of candlesticks that form a morning star doji.  Without getting into any technical indicators that may support a bullish forecast lets look at the Japanese candlesticks together and the “morning star doji” pattern that they form. This pattern consists of a bearish move down, followed by a doji star indicating an end of the prevailing trend down, then a bullish candlestick up that penetrates to at least the half way point of the candlestick prior to the doji star

Japanese Candlesticks – Example

Japanese candlesticks

Japanese Candlesticks Are Superior

This is why Japanese candlesticks are superior to any other form of charting for stocks forex or any instrument. You initially see the bearish strength. Then you get a doji star that tells you that the bearish trend is weakening.  The very next day price reverses and rally’s past at least the 50% mark of the first candlestick in the pattern.

This is just one example of why Japanese candlesticks are the first choice among the top traders in the world.  When you really get into the advanced patterns you will be amazed at the accuracy provided be this superior analysis. To get started learning at least the most useful Japanese candlestick patterns visit my page titles “Top 10 Candlestick Patterns” – here you can start on the path to understanding the meaning behind the patterns and how they work.

Always keep in mind that Japanese Candlesticks are going to be more valuable to you once you understand them intuitively.  The good news is that these patterns are intuitive from the start so the learning curve is brief. The key is the underlying meaning in the pattern, understand the meaning not just the pattern and you are off to the races.

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