Japanese Candlesticks and its Types:
Japanese candlesticks reflect the market conditions of a certain currency in forex trading. It can show the continuation of the price movement in a certain direction. Similarly it can expose the reversal of the price movement in coming future as well.
High point is the top most level of the upper shadow. The upper shadows reflect the high time or session of trade of a particular currency.
Low point is the below level of lower shadow. The lower shadows reflect the low or less attractive session of trade.
Long Real Body:
The real body is basically the hollow or the blackened filled part of the candlestick. The long body reflects the extensive trade.The longer the real body is, the more the trade. Thus it reflects and exposes the trading pressure of a certain currency. We can judge that the currency is being actively traded by just looking at the long real body.
Short Real Body:
The short real body is the clear reflection of less trading pressure. It means that the currency is not being preferred for trade at that moment.
Types of Japanese Candlestick:
Japanese candlesticks have many types but we can divide them further into groups according to the number of the bars that make up the pattern of the candlestick. The number of bars forming different candlesticks is Single, Dual and Triple.
The Japanese candlesticks having a single bar are:
Shooting Star,Spinning Tops, Hanging Man,Dojis, Marubozu , etc.
The patterns of Japanese candlesticks having dual bars are:
Tweezer Tops, Bullish and Bearish Engulfing etc.
The patterns of Japanese candlesticks having triple bars are Morning and Evening Stars, Three Inside Up and Down etc.