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Chapter 9, Part I. Candlesticks – what are they?

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, May 20, 2011.

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  1. Administrator

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    Part I. Candlesticks – what are they? [​IMG]
    Commander in Pips: Today we will start to study the details of Japanese Candlesticks. Do you remember what they are?

    Pipruit: Sure, Commander. What else can we learn here? We’ve already talked about them and I know how to read candlestick charts…​

    [​IMG]
    Commander in Pips: That’s good. But do you know that candlesticks can form different combinations, i.e. patterns that could help you in a making a decision about further market moves? Some group of candles, from 1 to 3 of them, could create continuation and reversal patterns, and when they appear in the right place (for example at support or resistance areas) - could give you some confidence about these areas and your analysis of further price action.

    Pipruit: Cool! I didn’t know that. Let’s start with it now…​

    Commander in Pips: As you wish…Sire… So, the history of technical analysis as application of price charts to monitor price action dates back at least 1000 years and was first documented by Japanese. They used rice as a gauge to estimate supply and demand. Their patterns and charting way, using candlesticks was generally unknown in Europe and US until the 50s. But their popularity has risen significantly to 80s-90s and now candlesticks are highly used in technical analysis.

    It worth noting here that Steve Nison has made a major work for popularization of the Japanese approach to technical analysis in US and Europe. His books “Japanese Candlesticks” and “Beyond Candlesticks” remained as bestsellers in this sphere for many years. When we will learn them and you will find on your own experience that candlesticks are suitable for you –we strongly recommend to read these books. They are not so large, by the way, and have a lot of charts. So, you will quickly read them…
     
    #1 Administrator, May 20, 2011
    Lasted edited by : Feb 15, 2016
    Hamza Samiullah and fran alvarez like this.
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