Japanese Candlesticks Charting

Price Action Trading/ Japanese Candlesticks Charting is an ancient Japanese technical analysis method used in rice trading in the 1600s and then used in trading rice contracts from 1710.

The candlesticks when introduced first, It was used to display the absolute values of the open, high, low, and closing (OHLC) prices of rice of days. So, we can tell it was plotted in a daily time frame. But, as the popularity rises, the concept of different time frames kicks in.

Like, a 15 minutes time frame will show OHLC values of that instrument in each 15 minutes! Then, patterns immersed! People started to find methods to identify trend continuation and trend reversal more clearly and more precisely.

In short, it became a pictorial representation of demand and supply!

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