Introduction To Japanese Candlestick Charting

Candlestick charting introduced in japan hence its called Japanese candlestick. candle stick charts is a oldest types of charts used for price prediction.
Japanese candlestick charts are more useful as compare to Standard bar chart. For Japanese candlestick High, close, open, low point is very important.

Mainly Japanese Candles are two types

BULL CANDLE

Japanese Candlestick

BEAR CANDLE

Bear candle

How Many Types of Candles in Japanese candlestick Charting?

Long Day Candle:- In such kind of candle real body is long. Long Day candles are two types Long bearish real body candle & Long bullish real body candle.

Long Bullish Real Body Candle

Long bearish real body candel

Long Bullish Real Body Candle
Long Bullish real body candel
Short Day Candle:-In such kind of candle real body is short. Short Day candles are two types Short bearish real body candle & Short bullish real body candle.

Short Bearish Real Body Candle

short bearish real body candel

Short Bullish Real Body Candle
short bullish real body candel

Candlestick is divided in to three parts

Japanese charts use individual lines that look like candles, hence the name, and are comprised of real body and shadows. There are a number of formations that take place, both bullish and bearish, that you can use Japanese candlestick charts on.
1) Upper Shadow
2) Real Body
3) Lower Shadow

What is Real Body of Candle?

Middle Part of candle is called real body of candle. Colour of Real body of candle depends upon its open and close point. If current candle closed higher than previous candle than its colored is white or green. If current candle closed lower than previous candle than its colored is black or red.

Body is White or Green if stock closed higher

white real body

Body is Black or Red if stock closed lower

black real body

What is Upper Shadow and Lower Shadow?

Long Upper Shadow

long upper shadow

Upper & Lower Shadow

upper and lower shadow

Long Lower Shadow

long lower shadow

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