거래할 준비가 되셨나요?
지금 등록하세요

Candlestick Analysis

Looking at a Japanese candlestick chart you can ask the question why this chart looks like this — black and white rectangles on the field? The idea for this chart came from 18th century Japan where the biggest rice traders used candles to see the rice price change. When the price had been changed, traders took a new candle and cut it. So the remaining piece of the candle was equal to the current price. The traders studied the candles and found the patterns that helped them to estimate future rice prices.

Later, in the early 90’s of the 20th century this chart was used by the brokers and Japanese rice traders’ knowledge was integrated into the modern exchange market. Thus the candlestick analysis appeared. The candlestick analysis uses different combinations of Japanese candlesticks to foresee future price movements.

The candlestick bars are rectangles with the upper and lower lines so they look like real candles. The rectangle is called a candlestick's real body and the lines are called its shadows.

The candlestick bars

These rectangles include the following data:

The open price, a price at the beginning of the interval.

The high price, the maximum price during this interval.

The low price, a minimum price during this interval.

The close price, a price at the end of the interval.

So the candlestick is formed using four prices fixed in a definite time period.

The candlestick analysis

There are two types of candlesticks:

1. Bullish candlestick shows the price growth. An opening price is lower than a closing price.

2. Bearish candlestick shows the price fall. An opening price is higher than a closing price.

Bullish and bearish candlesticks

Besides the basic candlesticks, there are also the squat candlesticks with the real bodies 3-4 times smaller than their shadows.

Squat candlesticks

The squat candlestick shows that the market movement became slow and will reverse soon — the movement is not strong enough to continue and the candlestick's real body is small but the shadows are long because of the attempts to continue the movement in the market. If you see such a candlestick on the chart you should prepare for the current tendency reversal.

There is another candlestick pattern — the engulfing pattern which also gives the reversal signals. The engulfing pattern is the moment when a new candlestick appears and it's bigger than the previous one and has a reversal direction. You can see the example as follows:

Engulfing pattern

This candlestick signalizes the soonest tendency reversal.

When analyzing the candlestick chart you should consider the real body, size, and form of the candlestick that helps you to foresee the market situation. You can start analyzing the candlestick only after its formation, i. e. when the interval ends. So you can receive the true signal and use it correctly. The candlesticks also give us signals when their real bodies penetrate the strong levels.

The strong level of penetration is a moment when the candlestick's real body has broken this level and closed behind it. On the chart, it looks as follows:

This candlestick signalizes soonest tendency reversal

If at least 2/3 of the candlestick body has crossed the line, it'll be a strong signal of the strength level penetration.

Signal of the strength level penetration

When we see this signal we can expect further price movement outside of this level.

But you should always remember about signal confirmation when working with the candlestick analysis. The signal confirmation will be the next candlestick moving in the signal direction. So if you see the candlestick closed behind the strength level, you should wait for the next candlestick with the same direction. Otherwise, you will receive a false penetration.

False penetration

As we see in the picture, if there is no strong signal you should always wait for the confirmation. The candlestick analysis is simple to use and if you remember its basic rules you'll be able to foresee future price movements.

거래할 준비가 되셨나요?
지금 등록하세요

회사는 호주, 오스트리아, 벨라루스, 벨기에, 불가리아, 캐나다, 크로아티아, 키프로스 공화국, 체코 공화국, 덴마크, 에스토니아, 핀란드, 프랑스, 독일, 그리스, 헝가리, 아이슬란드, 이란, 아일랜드, 이스라엘, 이탈리아, 라트비아, 리히텐슈타인, 리투아니아, 룩셈부르크, 몰타, 미얀마, 네덜란드, 뉴질랜드, 북한, 노르웨이, 폴란드, 포르투갈, 푸에르토리코, 루마니아, 러시아, 싱가포르, 슬로바키아, 슬로베니아, 남수단, 스페인, 수단, 스웨덴, 스위스, 영국, 우크라이나, 미국, 예멘의 시민 및/또는 거주자에게 서비스를 제공하지 않습니다.

제휴 프로그램
Partners ExpertOption

결제 방법

Payment and Withdrawal methods ExpertOption
이 사이트에서 제공하는 작업은 고위험 작업이 될 수 있으며 실행 역시 높은 위험성을 가지고 있습니다. 이 사이트에서 제공하는 금융 상품 및 서비스를 구매하실 경우, 투자 금액의 심각한 손실을 초래하거나 계정에 있는 금액을 모두 잃게 될 수도 있습니다. 사용자는 사이트에서 제공하는 서비스와 관련하여 개인적, 비상업적, 양도 불가능한 용도로만 이 사이트에 포함된 IP를 사용할 수 있는 제한적 비독점적 권리를 부여받습니다.
EOLabs LLC는 JFSA의 감독하에 있지 않기 때문에 일본에 금융 상품을 제공하고 금융 서비스를 요청하는 것으로 간주되는 어떠한 행위에도 관여하지 않으며 이 웹 사이트는 일본 거주자를 대상으로 하지 않습니다.
© 2014–2024 ExpertOption
ExpertOption. 무단 복제 금지.