HOW TO UNDERSTAND CANDLESTICKS
The Japanese candlestick chart is our favorite chart for trading. Although we have already spoken, let's examine in more detail. This is the most comprehensive “indicator” and the heart of the Price Action. A Japanese candlestick shows exactly the same information as a bar chart, but in a simpler way to read. How to understand a Japanese candlestick and use for trading? As we can see each candle has a wick, in both up and down (upper shadowlower shadow). Our job as traders is to identify the significance of the Japanese candlestick. With That said, we are interested in the body of a Japanese candle but also the wick.
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