Japanese candlesticks are a type of chart used in financial market analysis. These candles provide important information about price movement over specific time periods, such as daily or weekly periods. Here is a basic explanation of Japanese candlesticks with information about their shape and meanings.

# How to read Japanese candlestick:

1. Main part (body): Represents the difference between the opening price and the closing price. If the closing price is higher than the opening price, the candle is usually colored green or white (indicating an increase in price). If the closing price is lower than the opening price, the candle is colored red or black (indicating a decrease in price).

2. Tail (wick): The lines extending from the body, where the upper wick indicates the highest price reached during that period, and the lower wick indicates the lowest price.

# Types of candles:

1. Bullish Candle:

- Body: green or white.

- Indicates: Close higher than open, indicating that buyers were strong during that period.

2. Bearish Candle:

- Body: red or black.

- Indicates: Close lower than open, indicating that sellers were in control.

3. Doji candle:

- Body: Very small, meaning the opening and closing prices are close together.

- Indicates: A state of uncertainty, which may indicate a possible change in direction.

4. Engulfing Candle:

- Bullish engulfing: A small bearish candle followed by a larger bullish candle.

Bearish Engulfing: A small bullish candle followed by a larger bearish candle.

- Indicates: A possible shift in trend.

#Illustrations:

You can find illustrations of Japanese candlestick patterns online. Search for “Japanese candlestick patterns” and you will see many examples explaining the different types of candles with illustrations.

# Use in analysis:

Japanese candlesticks can be used to identify trends, indicate buy or sell, and reveal support and resistance points. They are essential in technical analysis strategies for traders.

You can refer to the old posts if you want illustrative images and old lessons. Thank you, my dear user.