Home
登录註冊
準備好交易了嗎?
馬上註冊

Candlestick Analysis

Looking at a Japanese candlestick chart you can ask the question why this chart looks like this — black and white rectangles on the field? The idea for this chart came from 18th century Japan where the biggest rice traders used candles to see the rice price change. When the price had been changed, traders took a new candle and cut it. So the remaining piece of the candle was equal to the current price. The traders studied the candles and found the patterns that helped them to estimate future rice prices.

Later, in the early 90’s of the 20th century this chart was used by the brokers and Japanese rice traders’ knowledge was integrated into the modern exchange market. Thus the candlestick analysis appeared. The candlestick analysis uses different combinations of Japanese candlesticks to foresee future price movements.

The candlestick bars are rectangles with the upper and lower lines so they look like real candles. The rectangle is called a candlestick's real body and the lines are called its shadows.

The candlestick bars

These rectangles include the following data:

The open price, a price at the beginning of the interval.

The high price, the maximum price during this interval.

The low price, a minimum price during this interval.

The close price, a price at the end of the interval.

So the candlestick is formed using four prices fixed in a definite time period.

The candlestick analysis

There are two types of candlesticks:

1. Bullish candlestick shows the price growth. An opening price is lower than a closing price.

2. Bearish candlestick shows the price fall. An opening price is higher than a closing price.

Bullish and bearish candlesticks

Besides the basic candlesticks, there are also the squat candlesticks with the real bodies 3-4 times smaller than their shadows.

Squat candlesticks

The squat candlestick shows that the market movement became slow and will reverse soon — the movement is not strong enough to continue and the candlestick's real body is small but the shadows are long because of the attempts to continue the movement in the market. If you see such a candlestick on the chart you should prepare for the current tendency reversal.

There is another candlestick pattern — the engulfing pattern which also gives the reversal signals. The engulfing pattern is the moment when a new candlestick appears and it's bigger than the previous one and has a reversal direction. You can see the example as follows:

Engulfing pattern

This candlestick signalizes the soonest tendency reversal.

When analyzing the candlestick chart you should consider the real body, size, and form of the candlestick that helps you to foresee the market situation. You can start analyzing the candlestick only after its formation, i. e. when the interval ends. So you can receive the true signal and use it correctly. The candlesticks also give us signals when their real bodies penetrate the strong levels.

The strong level of penetration is a moment when the candlestick's real body has broken this level and closed behind it. On the chart, it looks as follows:

This candlestick signalizes soonest tendency reversal

If at least 2/3 of the candlestick body has crossed the line, it'll be a strong signal of the strength level penetration.

Signal of the strength level penetration

When we see this signal we can expect further price movement outside of this level.

But you should always remember about signal confirmation when working with the candlestick analysis. The signal confirmation will be the next candlestick moving in the signal direction. So if you see the candlestick closed behind the strength level, you should wait for the next candlestick with the same direction. Otherwise, you will receive a false penetration.

False penetration

As we see in the picture, if there is no strong signal you should always wait for the confirmation. The candlestick analysis is simple to use and if you remember its basic rules you'll be able to foresee future price movements.

準備好交易了嗎?
馬上註冊
ExpertOption

本公司不向澳洲、奧地利、白俄羅斯、比利時、保加利亞、加拿大、克羅埃西亞、塞普勒斯共和國、捷克共和國、丹麥、愛沙尼亞、芬蘭、法國、德國、希臘、匈牙利、冰島、伊朗、愛爾蘭、以色列、義大利、拉脫維亞、列支敦士登、立陶宛、盧森堡、馬爾他、緬甸、荷蘭、紐西蘭、北韓、挪威、波蘭、葡萄牙、波多黎各、羅馬尼亞、俄羅斯、新加坡、斯洛伐克、斯洛維尼亞、南蘇丹、西班牙、蘇丹、瑞典、瑞士、英國、烏克蘭、美國、葉門.

交易員
合作计划
Partners ExpertOption

支付方式

Payment and Withdrawal methods ExpertOption
本网站提供的交易可视为高风险操作,其执行可能涉及重大风险。在买卖网站提供的金融工具和服务时,可能会给您带来显著的投资损失,甚至亏损账户的全部资金。您被授予有限的非独家权利(包含个人、非商业、不可转让的知识产权)使用本网站所提供的服务。
由於EOLabs LLC不受JFSA監管,因此不涉及任何被視為向日本提供金融產品和招攬金融服務的行為,該網站也不面向日本居民。
© 2014–2024 ExpertOption
ExpertOption版权所有。