Brief explanation of Japanese candlesticks

• Japanese candlesticks are a popular way to display price movements. Each candlestick consists of a body and shadows.

• Body: Represents the difference between the opening and closing price.

• Upper shadow: Represents the highest price reached.

• Lower shadow: Represents the lowest price reached.

• Green candlestick: Means that the closing price is higher than the opening price (bullish market).

• Red candlestick: Means that the closing price is lower than the opening price (bearish market).

Japanese candlestick patterns:

• Doji candlestick: Occurs when the opening and closing prices are very close to each other. This pattern indicates indecision in the market.

• Hammer candlestick: Has a small body and a long lower shadow. This pattern indicates a possible reversal to the upside.

• Bullish/bearish engulfing candlestick: When a large candle engulfs a previous smaller candle, indicating a strong change in trend.

Chart analysis for beginners:

• Support and resistance: These are historical price levels where the price can stop or reverse. A support level indicates a price at which there is heavy buying, while a resistance level indicates a price at which there is heavy selling. • Moving averages: They help determine the overall direction of the market. When the price is above the moving average, the trend is considered to be bullish, and vice versa