Secrets of Japanese Candlestick professionalism – Lesson 4

Dear learner, we want to alert you for very important thing , in order not to be  your technical analysis of the Japanese Candles just superficial, technical analysis does not work and do not benefit and does not help to predict future price trends at all, the base of analysis Japanese Candlestick in our website: says you should not expect trends coming by reviewing the shape of the candle through its individual image, and even technical analysis have been correct and professional must learn three important things build on a number of tutorials coming in our educational website www.accurateforexsignals.info, and summed up these things in: 

(1) Learn the basic components of Japanese Candles.

(2) Methods of learning how to read Japanese Candlestick.

(3) Learn ways to explore the size of the momentum in the Japanese Candlestick.

(4) Learn methods of integrating Japanese Candlestick chart.

We will discuss all these matters in some detail to be able dear learner to master the use of candles in the Japanese technical analysis, and, as usual, we do not prefer lossless times in the words of theoretical and prefer practical education, so we start to identify the components of the Japanese Candlestick.

The basic components of the Japanese Candles:

Learning the basic components of the Japanese Candles are the first step adopted by learning how to read Japanese Candlestick properly, and in order to learn about these components you must know that the one candle is an analytical tool to reflect a series of events from the moment of opening price to the moment of the closing price during the period of time from the time called ("round trading") and this round returns to time frame chosen by the technical analyst, we add to this that the one candle does not ignore the discovery of higher prices and lower prices during that time period and that the essential difference between Japanese Candlestick charts and line charts.

Japanese Candlesticks Function:

The Japanese candlesticks in the total form are beginning from the highest price ("upper shadow if found") to the lowest price ("lower shadow if found") through the levels of the opening and closing, all of which are considered conflicts that took place between the involved parties in the round of trading, and the participants are sellers and buyers, and the rule of this tour is the closing price of the candle at the end of the trading period, Yes ,closure is a status of indicator balance among the parties, and technical analyst uses Japanese Candlestick for the purpose of translating and understanding situations of markets and then highlight areas of the prices that are changing the trends of rising to falling or from falling to rising, and the Japanese Candlesticks do not overlook the discovery times of fear the frequency and uncertainties that may affect market participants. 

Components of a single candle on the chart:

1. Open, which is the price at the beginning of each new candle 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 period of specific time.

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

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

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

Each candle consisting of the previous data and candles differ  in the forms and names and expectations for the movement of the next prices, because the body and shadows of  candlesticks are key factors in changing forms and names and expectations of Japanese Candlestick, there are candles have long bodies, and there are candles have short bodies, there are candles without bodies, and there are candles have long shadows, and other short shadows, and also no shadows, and we will learn in our educational lessons later most important forms and the names of Japanese Candlestick, Japanese Candlestick function is to expect coming  prices on the chart.

Importance of Real Body: 

The real body is regarded as the standard compared to equilibrium with the buyer and sellers, the more the real body is long whenever it was referring to the fact that there is more momentum, both bullish momentum in the case of increasing the number of buyers or momentum Bearish in the case of increasing the number of sellers, while if the real body is short, it would indicate to the low momentum,

Whether the bullish momentum was low in the case of low numbers of buyers or low momentum Bearish in the case of low numbers of sellers, and this tour should be a specific period of time, and determined the time frame chosen by the analyst, and this can be said that monitoring of real bodies of Japanese Candlestick means control opportunities shift the balance between buyers and sellers, and this significant signal helps to discover  market sentiment , And therefore the anticipating of coming trends of prices on the chart, and knowing  are they rising trends or falling, or is it a period of confusion because of the emergence of trends and side price movement in the form of either side of the graph, If the tip of the balance turns towards increasing turnout of buyers in this case we say it happened ("revolutionary attack ") is expected to rise in price and candle appear in blue color, but if the tip of the balance turns towards increasing of turnout of sellers in this case we say ("Bear attack ") happened It is expected a decline in prices and candle appear in red, as shown in the illustration below.