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Japanese Candles

Japanese Candles

Japanese Candles are one of several types of graphs in a trading platform which give traders an idea of price fluctuations on the market. Thanks to their visual layout, Japanese candles became one of the most popular methods of technical analysis in the 1980s. The way they look is really like a wax candle. A rectangle signifying the time period separating the opening and closing prices is called the body of the candle. The ends of lines which come from the rectangle signify the minimum and maximum prices for the period of time in question. Japanese candlesticks are the basis for making many graphical models for technical analysis.


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