Japanese candles
Japanese candlesticks are one of the types of technical analysis that many traders and followers of the financial markets follow. Japanese candlesticks are a study of price movement to predict future movement, through the price movement itself without taking into account other analytical conditions.
A candle is a price movement over a specific period of time. Japanese candles are usually studied on daily intervals. A candle consists of the opening price and the closing price along with the high and low.
By default, the price rise is drawn by an empty candle, and the price fall is drawn by a filled candle colored black. However, the colors can be modified according to the user's preference.
The candle shadow is the area separating the high, the low, and the candle body, while the candle body
The candle is the distance between the open and the close, notice in the image above that the bullish candle has the open at the bottom, and the close at the top, while the bearish candle has the open at the top, and the close at the bottom by default, the chart in the Trend 10 program is by candles, and once you run the chart you will see the candles as in the following image
According to technical analysis, the shape of the candle plays an important role in explaining what happened during the construction of the candle. Taking the daily chart, we can say that the bullish candle indicates the superiority of the forces of the bullish trend over the bearish trend, and the opposite in the bearish candle.
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Wait for the rest of the explanation in the next posts.
