Japanese Candlesticks
Visual representation of price movements using candle-shaped bars.
Beginner-friendly explanation
Japanese candlesticks show price changes over a given period. Each candle has a body and wicks, showing the open, close, high, and low.
Example:
A green candle means the price went up. A red candle means it went down.
Intermediate-level insight
Candles can form patterns (Doji, hammer, star…) interpreted as market signals. Context (volume, support, trend) matters.
Example:
A hammer appearing on support is often a bullish reversal signal.
Advanced perspective
Japanese candlesticks are used in advanced predictive models, integrating volatility, time, and statistical ratios. Variants like Heikin Ashi or Renko help smooth trends.
Example:
A quantitative trader uses candle patterns combined with a volatility score to filter entries.
Technical & Chart Analysis
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