Japanese candlesticks are a method of graphing the prices of financial assets that originated in Japan in the 18th century. They provide a clear and concise visualization of price movements over a given period of time, allowing traders to identify trends and make informed decisions.
Anatomy of a Japanese Candlestick
A Japanese candlestick consists of two main elements:
* The real body:
It represents the difference between the opening price and the closing price of the period. A white or green body indicates a close higher than the opening (up), while a black or red body indicates a close lower than the opening (down).