Candlesticks: Introduction

In this section we will see an important part of technical analysis that is familiar with Candlestick. These candles were used by the Japanese as a form of analysis in the measurement of possible fluctuations in the price of rice, which was a key product in Ancient Japan.

Japanese candles were used by various people emphasizing Muneisha Homma, considered at the time the king of the market, thanks to having achieved 100 consecutive successful operations.

The candles we provide information about how you feel the market will help us to discern any movement that could do depending on how the market behaves and how it is reflected in the sails.

To define the market sentiment, our candles provide information through various ways, depending on how your body is or has been your shadow. So if we see that a candle has a long body, it shows that buyers have pushed prices to rise , otherwise the sellers would need to be pushed down.

When we see this long shadow indicates a reluctance of buyers and sellers giving in to some others.

Candles can be classified into three main groups, upside, downside, or below, which can be classified depending on the reliability of high, moderate or weak.

Bullish candles indicate a possible change in the bullish market, where we can assess the behavior of the market is telling us how strong this change, and where to seek confirmation of that change. Bearish candles tell us the same thing but in this case will be changes in the market downside. Continuation of the candles indicate a continuation of the trend.