A candlestick to describe the price movement during the given timeframe.
Japanese candlestick Pattern:
A candlestick graphic formed by the movement in the market prices and contains predictive power in next market direction.
How Japanese candlestick formed:
By using the opening price,closing price,highest price and lowest price of the given time period.
There are two types of candlestick one is Bullish candlestick and other is Bearish Candlestick.
Bullish candle is formed when the closing price is above the opening price.
Bearish candle is formed when the closing price is below the opening price.
Long candle signifies high market volatility and a short candle low market volatility indicate.
Advantages of Japanese Candlestick:
1.Contain unprocessed and raw data about the market sentiments.
2.Provide unique insights on the relationship between the buyers and sellers.
3.Gives early signals oe idea about nest market movement.