Tag: candlestick charts

How Japanese Candlestick’s Express Sentiment

How Japanese Candlestick’s Express Sentiment

Trading Articles
We might look at them every single day and dream of them but do you actually know the history of the candlesticks used on charts, otherwise known as Japanese candlesticks. Believed to have been born as the idea of Munehisa Homma in the 1700s, Japanese candlesticks first appeared in Japan. Munehisa was a Japanese rice trader and apparently identified that fear and greed affected the price of the markets, in addition to the law of supply and demand. The principle of the Japanese candlesticks is to measure the emotions in the market. The candlestick allows the trader to read more into the sentiment of the market that could otherwise be seen with a line graph. The time period a candlestick represents is often changed to help the trader get a holistic overview of the market 'emotion'. These ...
What are Japanese Candlestick Patterns?

What are Japanese Candlestick Patterns?

Trading Articles
The Japanese Candlestick patterns are one of the most popular technical analysis tools in use today. Japanese Candlestick traces its roots to the Japanese rice traders, back in the 18th century. Over time, the Japanese Candlesticks have become one of the most popular chart types. This is Part 1 in a series of articles explaining the Japanese Candlestick Patterns. They are visual patterns easily seen on a trading chart. The patterns are made up of one or up to three candlesticks in a trading chart. These visual patterns depict the relationship between individual candlesticks. It does not involve any mathematical calculations. The Japanese Candlesticks are purely visual and potentially signals changes in the market sentiment. They can predict reversal of trends or corrections in a trend.
What is Support and resistance in forex trading

What is Support and resistance in forex trading

Trading Articles
Support and resistance is one of the most widely used concepts in trading. The concepts are undoubtedly two of the most highly discussed attributes of technical analysis and they are often regarded as a subject that is complex by those who are just learning to trade. Support and resistance trading is considered to be one of the most effective ways of Forex trading since it is based on the primary source of information -market price itself. Forex Support Levels – Areas which price cannot seem to break below. If a break does happen, this is only temporary and the price will soon return above the level. Forex Resistance Levels – Areas which prevent the price from rising further. These levels act like a ceiling and appear to force price back down when it tries to break above the level.
A newbies guide to understanding Candlestick charts

A newbies guide to understanding Candlestick charts

Trading Articles
Candlestick charts is a form of chart type that was first developed by the Japanese rice traders with the credit going to a particularly successful rice trader by the name Homma (or Homna) from the Japanese town of Sakata. It is said that Homna built a fortune for himself trading rice futures by using the Candlestick charts. The candlestick charts represent price movements of an instrument with each bar representing price movement over a given period of time. Candlestick charts are plotted on an X and Y axis representing Time and Price respectively. Candlestick charting was made popular in the West by Steve Nison with the first Candlestick chart having to appear sometime around 1850's. Today, Candlestick charts have become the defacto chart type across all markets; be it forex or future...