This article has been translated from English to Gen Z Slang.
We’ve chatted loads about Japanese candlesticks.
Hope you’re not totally wigged out but actually super lit about these candlestick charts now.
Maybe we’ve even sparked a vibe that turns into a lifelong obsession with Japanese candlesticks.
Here’s a quick roundup of what you’ve peeped about Japanese candlesticks:
- If the close is higher than the open, a hollow (usually shown as white) candlestick pops up.
- If the close is lower than the open, a filled (usually shown as black) candlestick pops up.
- The filled or hollow main part is called the “real body” or just body.
- The slim lines that stick out above and below the body say ‘sup to the high/low range and are called shadows.
- The top of the upper shadow = the “high”.
- The bottom of the lower shadow = the “low”.
Long bodies mean some serious buying or selling drama. The longer the body, the juicier the pressure.
Short bodies mean chill vibes with low-key buying or selling. In Wall Street's hood, bulls are buyers and bears are sellers.Upper shadows drop hints about the session high.
Lower shadows drop hints about the session low.
There’s a whole squad of Japanese candlestick patterns, but they’re grouped into how many candles form the pattern.We got singles, duos, and triples in the mix.
The trendiest Japanese candlestick types include:
| Number of Bars | Japanese Candlestick Pattern |
|---|---|
| Single | Spinning Tops, Dojis, Marubozu, Inverted Hammer, Hanging Man, Shooting Star |
| Two | Bullish and Bearish Engulfing, Tweezer Tops and Bottoms |
| Three | Morning and Evening Stars, Three Black Crows and Three White Soldiers, Three Inside Up and Down |
Just peep the Japanese Candlesticks Cheat Sheet for a quick cheat code on these patterns.
Mix candlestick analysis with solid support and resistance levels for max success.
And finally, some major pro tips:
Even if Japanese candlesticks are shouting about a reversal or continuation, don’t take it as gospel! Always check the vibe of the market and watch what the price is telling you.
This is the forex game and nothing’s guaranteed!
And if you’re itching for a deeper dive into Japanese Candlesticks, you can’t go wrong with the book, Japanese Candlestick Charting: A Contemporary Guide to the Ancient Techniques of the Far East. It’s penned by the OG, Steve Nison.