Basics Of Japanese Candlestick Reading
The skill of reading candlesticks to predict stock market reversals can be learned by anyone. This art of utilizing patterns of Japanese candlesticks to detect investor turns and sentiment goes back for centuries. The Japanese have long observed patterns of human decision when it comes to investing. Furthermore, they realized that these patterns produced results that could be predicted with a high degree of certainty which could be mapped out using candlesticks. The basics are this: a stock price closing higher for the day will result in a white candle;a stock price closing lower nets a black candle; boxes formed are called “the body”; and daily price movement extremes are called “shadows or tails” which are lines extending from the body.