AtoZ Markets – Once there was a Western man called Steve Nison. He learned a unique technique called the Japanese candlestick from a fellow broker who is Japanese. Steve became very invested and interested in candlesticks to the point that he even made write-ups about them. In the 90s, people began to recognize and widely use Japanese candlesticks. What once was uncommon became a helpful tool for traders.

What are these Japanese candlesticks?

Traders use Japanese candlesticks when they want to describe a specific price action for a given time. The given time frames can be any. It can be days, weeks, hours, or even minutes! These candlesticks form with the use of the open, close, high, and low for a given time frame.

Here are some essential Japanese candlestick points

Draw a hollow or white candlestick when the close is above the open. On the other hand, draw a black or filled candlestick if the close is below the open. Here the parts of the Japanese candlestick to further understand what we mean:

The body. The body, also known as the real body, is the candlestick’s hollow or filled section in the middle.
Shadows. These lines are thin, extending above or below the body. They display the high or low range.
The high. It is the upper shadow’s top part.
The low. It is the lower shadow’s bottom.

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