Japanese candles

It is a kind of technical analysis based on drawing a relationship between the change in the share price and the change in time. The vertical line represents the change in price and the horizontal represents the change in time. This curve results in the emergence of candlestick-like columns called Japanese candles because the first to use technical analysis were Japanese in speculative rice.

The advantage of this method of drawing curves is that you can draw too much information as we will know next

Each candle represents a period of time that may be 10 minutes, 15 minutes, or a full day depending on the time duration of the curve

Each candle consists of three important parts as shown in the following diagram

1. The real body of the candle (real body) and consists of two lines upper and lower. One represents the opening and the other represents the closure. The opening price is the opening price of the stock at the beginning of this time period which represents this candle and the closing price represents the closing price of the stock at the end of this period that represents this candle.

If the opening price of this candle is lower than the closing price, then the price started low and then started to increase.

In some curves drawn at the sites the candle color is white green and the color of the black candle is red

Note that we are talking about the opening and closing of each candle and not for the stock itself unless the candle represents a full day of trading

The opening and closing represents the beginning of the trade and the

end of the trading day

2- The second part is the shadows shadows and divided into upper upper shadow line represents the highest price reached by the arrow during this period and we call it upper shadow or head overrun because we will need it a lot after that so we shorten the name to the top of the candle

The bottom line represents the lowest price and the share of the stock in this period and we call it the lower shadow or the leg of the overstepped legs

After drawing these candles show us several forms of candles and each form has certain specifications and indicates the specific trading of the stock and these forms represented by the following picture

Types of individual candles consisting of one candle:

Long white candle is characterized by the following:

• The opening price is lower than the closing means the price started at a price and then increased until it closed at a significant rise

• indicates a very high trading volume of the stock during this period

• Indicates that the buyers of the stock in control of trading means there is a compilation and purchase of a large quantity of the stock led to raise the price and close at a very large rise

• The existence of a high head of the candle represents the highest price and a man represents the lowest price of the stock in this period, but the head and man the length of each is not significant evidence that the price did not rise above the closing price and did not drop much from the opening price. Arrow to rise from the first candle to the end

• This candle indicates that the market is bullish, but this needs to be confirmed by other signs such as the emergence of this candle after a sharp decline in the stock or it appears at the point of support for the stock all this with some indicating the rise of the stock and this is another topic

2. The long white candle

It is the opposite of the previous candle in every way I mean

• - Opening price higher than closing means the stock collapses, falls sharply and closes lower

• - Sellers of the stock are in control of the trading and sell more to the low price

• Regular stock trading and insistence from sellers to reduce the price until the end of trading for this candle

• The head and the man are short proof that the price did not come down from the closing price and did not rise from the opening price only by a small percentage

• This candle indicates the presence of the market in the case of bearish, but need other signs help us talk about it after that

3 - short candle characterized by the following

• The most important condition for this candle to be a small body and head and man are equal and short and this is one of the most important conditions that differentiate from the doji candle that will come after that

• its body is short evidence of weak trading on the stock and that the buyers and sellers could not any one of them to control the trading of the stock for that price did not move much

• The head and man are short because the price does not drop or rise from closing and opening a lot

• It applies the same words in the long candle, but the only difference is the volume of trading on the stock and the inability of any one to overcome the second

• So in the white candle closes at a simple height and the black candle closes the arrow at a simple low

4 - The fourth candle consists of two forms, the first white color called hammer and the second color black and called hanging man

• Hammer or hammer

• Features:

• her body is short white color and her head is short and her leg is twice as long as the body and these conditions to differentiate between them and other forms

From its shape it turns out that: its body is short white proof that the price has increased from the opening and closed on the rise but a simple rise

The head is short proof that the price did not rise much from the closing price means the high price that occurred during the trading was very close to the closing price

Her man is very long proof that the sellers dominated the trading in the first until the price fell to this extent and then dominated buyers and bought large quantities until the price returned to the opening price again

This candle always occurs after a fall for the stock, so it indicates a lot of support point and waiting for the reverse of the rise of the stock and this difference between them and hanging man

• Hanging man

• Features:

• Short body black color proof that the price began high and then collapsed and closed down but simple

• The man and the head are the same in the hammer in terms of lengths, but the explanation is no different

• This candle shows that the sellers took control of the stock and sold until it went down to the price shown by the man but the buyers returned and took control of the stock and raised it but could not reach the opening price so you feel that the sellers got a little frustrated opposite the hammer in which they were able to raise the price again to the price Opening

• So this candle indicates the near collapse of the stock and that it reached the point of resistance and therefore is not occur only after the rise of the clear stock and this is the difference between them and the hammer

This curve shows the difference between hammer and hanging man