How to Read Japanese Candlesticks?
Title:
Primary Market Language: Learn to Read Japanese Candlesticks Professionally
Japanese candlesticks are not just drawings; they are the market's language that tells you where the price is heading. Each candlestick represents price movement over a specific period (e.g., one hour, four hours, one day…).
Components of the Candlestick:
Real Body: The difference between the opening and closing price
Upper and Lower Shadows: Represent the highest and lowest price during the period
Color: Green (uptrend), Red (downtrend)
Important Examples:
Hammer Candle = Bullish Reversal Signal
Bearish Engulfing Candle = Strong Downtrend Signal
Doji = Indecision in the market, Awaiting Strong Movement
Tip:
Do not read the candlestick in isolation but within the overall context (trend + volume + supports/resistances).
