Wrapping Up: Japanese Candlesticks 🔥
We’ve covered quite a bit about Japanese candlesticks—hopefully, you’re not burnt out, but rather fired up to dive deeper into the art of candlestick charting!
Maybe we’ve even sparked a flame that turns into a lasting passion for decoding price action with these time-tested tools.
So, before we say goodbye to our candlestick friend, let’s recap everything you’ve learned:
🔍 Candlestick Basics
-
When the close is higher than the open, you get a hollow candlestick (often white).
-
When the close is lower than the open, it forms a filled candlestick (usually black).
-
The body (or “real body”) is the thick part showing the range between the open and close.
-
The shadows (a.k.a. wicks) are the thin lines above and below the body showing the high and low of the session.
📏 Interpreting Candlestick Size
-
Long bodies = strong buying or selling pressure.
-
Short bodies = indecision or low activity.
-
In trader slang:
-
Bulls = buyers
-
Bears = sellers
-
-
Upper shadows indicate the session’s high.
-
Lower shadows indicate the session’s low.
🧩 Types of Candlestick Patterns
Candlestick patterns come in three flavors—depending on how many bars (candles) they involve:
| # of Candles | Pattern Examples |
|---|---|
| Single | Doji, Spinning Top, Marubozu, Inverted Hammer, Hanging Man, Shooting Star |
| Double | Bullish/Bearish Engulfing, Tweezer Tops/Bottoms |
| Triple | Morning Star, Evening Star, Three Black Crows, Three White Soldiers, Three Inside Up/Down |
Need a quick refresher? The Japanese Candlesticks Cheat Sheet has got your back.
🧠 Final Pro Tips
-
Candlestick patterns work best when combined with key support and resistance levels.
-
A candlestick may suggest a reversal or continuation—but it's never a guarantee. Always take market context and price action into account.
-
This is forex—we're in the land of probabilities, not certainties.
And if you’re serious about mastering this craft, check out the classic:
Japanese Candlestick Charting Techniques by Steve Nison—the definitive guide from the man who introduced candlestick charting to the Western world.
Japanese Candlestick Says Goodbye! 👋
Stay sharp, keep practicing, and remember—candlesticks are just one tool in your trading toolbox. Use them wisely, and they’ll light the way.