Japanese candlestick analysis

It was traffickers Japanese in the rice market in the seventeenth century were the first devised and used method of candles in the expression of the price movement, and has proven this method is very effective in the expression is concise and clear at the same time the price movement, making it superior to the Western style in the expression of movement Prices based on bars Bars not in rice markets has also begun, but in all financial markets, whether stock markets or commodities or currencies.Not only the benefit of candles Japanese accuracy and clarity, but also that he has long discovered that the forms of candles Japanese more able to express the psychological situation of the market and the nature of the conflict between sellers who pay the price drop, buyers who pay the price rise of any nature of the conflict between bears Bears and bulls Bulls or between the forces of supply and strong demand for Supply Demand.How so?Has been shown that the forms of candles give signals about what happens to price in the market and thus can predict the direction of price later hence the technical analysis using candles, a Japanese method of analysis similar to the way patterns that we talked about, but it depends on the forms of Japanese candles.A style show credibility in the relatively long time frame such as within a day or week, or at least the time in the time frame of at least so it loses much of its credibility and accuracy.When a shop analysis shows the exchange rate and Japanese candles for certain forms of this currency, the trader can be expected that the price of the currency will rise or fall later.Analysts have given each form of candles Japanese special name tags and their respective specifications, features, known as the
 There are two types of candles Japanese:• The type of evidence it appears that the price will continue to rise.• The type of shows to appear on the possibility of a reversal in price movement.
 Take, for example:Called the candle that has no body "star" Doji star.The candle that has no body means that the opening price is equal to the closing price.The emergence of this candle could mean a potential price reversalHammer HammerHanged Man Hanging manPregnant HaramyMorning Star Morning starEvening star Evening starThree soldiers Three soldiersAnd many other forms which are not free from the novelty of their names.It should be noted that the analysis of candles, like the Japanese method of analysis must be used in addition to other types, and not independently. Is not enough to see his star rising after three candles to rule that the price will fall.Analysis may not be true this time!But if he appeared, former star and the price was close to the line supporting the resistance strong addition to index RSI for example, was given that the price is too high over bought, then here you have three methods of analysis methods indicate the proximity of the low price and thus probability of this happening is much greater reliance on one method.Analysis has proved the effectiveness of the Japanese real candles in many financial markets, prompting a lot of professional analysts relied upon, although there are also plenty of analysts who do not pay attention much to this type of analysis.Analysis of Japanese candles broad topic and needs you to see and practice what we have said here is not merely a definition and a boot with this type of innovative analysis and that reminds me of a personal horoscope reading by analyzing the symbols in the remnants of cups of coffee!Except that the latter is nothing more than a fairy tale The analysis of Japanese candles is a combination of art and science has proven effective and only for the missed analysts of financial markets and their time in the study and use.