In this video we look at how to read Japanese candlestick charts. You can easily learn the kind of signals a candlestick chart provides. We give you the main patterns to help you spot the trends within the markets.

What are Japanese Candelsticks:

A candlestick chart (also called Japanese candlestick chart) is a style of financial chart used to describe price movements of a security, derivative, or currency. Each "candlestick" typically shows one day, thus a one-month chart may show the 20 trading days as 20 candlesticks.[1] Candlestick charts can also be built using intervals shorter or longer than one day.

It is similar to a bar chart in that each candlestick represents all four important pieces of information for that day: open and close in the thick body; high and low in the "candle wick". Being densely packed with information, it tends to represent trading patterns over short periods of time, often a few days or a few trading sessions.

Candlestick charts are most often used in technical analysis of equity and currency price patterns

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