Japanese candlesticks – Lesson 1

History of Japanese candlesticks:

Most traders do not prefer to talk about the past, preferring to focus on the market today and we also prefer this, but sometimes you must provide a quick historical overview to make it clear to you that this science a long time ago and we are still working it, the Japanese candlesticks of the most important methods of technical analysis of the markets money,  In the 17th century there was a Japanese businessman and mythical technical analyst named ("Homma Munehisa") and is widely credited with inventing the Japanese candlesticks, and his family was from the top traders in the rice and ("Homma") used candlesticks Japanese Analysis Art to study the morale of rice traders and approaches Emotional for these markets, and then succeeded in predicting the future movement of prices of rice, and his family became one of the richest people in Japan.

At the beginning ("Homma"), was watching the behavior of rice traders and began tracking prices of the opening and closing prices along with higher prices and lower prices that reach to the price of rice during certain time periods, and began to paint this data on graph paper in the form of a series of columns that looked like candlesticks from here it came the label ("candlestick").

Presently Japanese candlesticks evolved and became one of the stronger Science contemporary Technical Analysis, and for many novice traders, they believe that the Japanese candlesticks schemes are complex graphs, but, in our course we will teach you to master the art of trading using Japanese candlesticks charts, from through a series of tutorials that starting off now.

It is a duty on any serious trader wants to develop his skills in the field of technical analysis to learn Japanese candlesticks; we recommend and say please master in working out.

What is the Japanese candlestick charts

Is a charts and graphs in the form of a beautiful planning provide useful information on market sentiment and discover who they are the dominant force on it, whether they are buyers or are they sellers, and in the science of technical analysis called name ("bulls") on the buyers and the name ("Bears") on sellers.

Japanese candlesticks are beautiful charts that can be seen they are comfortable to the eyes of traders, when prices are in the case of high the bulls dominate the chart and the candlesticks color is blue and when the bears are in control of the chart the prices in case of falling and the candlesticks color is red.

How to prepare Japanese candlesticks on MetaTrader charts

Which comprises a single candlestick?

ANSWER: The candle is made up of the following:

1. Open, which is the opening price at the beginning of each new candlestick during a period of time determined by the time frame.

2. High Shadow, which is the highest price level reached by the price of the candle during a specific time period.

3. Low Shadow, the lowest price level and reached the price of the candle during a specific time period.

4. Close, a closing price that the candle has ended and closed completely, and will have to open a new candlestick.

5. Real Body, a commercial term for what the price movement of the price of opening up to the closing price of the candlestick.

Basics Japanese candlesticks

Each candle reflects a period of time determined by the trading of time frame.

Each candle tells us the story of the tour between buyers and sellers during the period of time specified by the time frame.

The lower shadow Serves as the bottom of candlestick which is the lowest price enables sellers to reach through a period of time from trading.

The high shadow as a summit of the candle, it is highest price buyers are able to access it during the period of time from trading.

Area closure of the candle is a measure of equilibrium between the sellers and the buyer and is determined to resolve trade round in his favor.

Neglect to focus on the closing level of the candle means a complete failure in the results of technical analysis.

At the close of the candlestick in the price less than the price of Open the candle color is red.

At the close of the candlestick at a higher price than the price of Open the candle color is blue.

The difference between the line charts and candlestick charts 

If the above information, there is a clear difference between the Japanese candlestick charts and line charts , because the Japanese candles show the movement of prices during the Specific period of time , the technical analyst can choose to replace period of time as it deems  appropriate By selecting the time frame on the chart , and then the essence  of  The difference between Japanese candles and line chart lies in the data given where That the line chart uses daily closing prices of currencies , which draws a solid line To each other in the form of a series of data over time , and the Japanese candlestick charts use 4 data which are , Open and the highest price and the lowest price and the price Close. 

Please note from now on

When we speak of the word ("Candlestick") or ("Candle") it refers to the one meaning of the word, that is a word ("candle"),  When we talk about the word candle, this word refers to a period of Time on the chart and technical analyst can specify the time period   by  Choose time frame.