What is Candlesticks?

Japanese candlestick chart analysis, so called because the candlestick lines resemble candles, have been refined by generations of use in the Far East. Candlestick charts are now used internationally by swing traders, day traders, investors and premier financial institutions.

Candlestick charts:

• Easy to understand: Anyone, from the person new to technical analysis to the seasoned professional trader can easily harness the power of candlestick charts. This is because, as will be shown later, the same data required to draw a bar chart (high, low, open and close) is used for a candlestick chart.

• Provide earlier indications of market turning points: candlestick charts can send out reversal signals in a few sessions, rather than the weeks often needed for a bar chart reversal signal. Thus, market turns with candlestick charts will frequently be in advance of traditional indicators. This will help you to enter and exit the market with better timing.

• Furnish unique market insights: candlestick charts not only show the trend of the move, as does a bar chart, but, unlike bar charts, candlestick charts also show the force underpinning the move.

• You Can used in all markets such as the stock market, forex market, or futures or commodity markets and can be a powerful trading tool for option trading.