Japanese candlesticks can be called the ABCD of trading.without fully understanding them is like going to battle without weapons.
when Steve Nison met Japanese brokers during his visit to Japan, he learned about Japanese candlesticks.
The first use of Japanese candlesticks was by a Japanese person named Munehisa Homma in the 17th century for rice trading.
they quickly signal reversals, allowing traders to make timely entry and exit decisions.
Candlestick patterns not only indicate trends but also the forces, i.e., the reasons initiating the trend. For example, the HAMMER candle
This technique has very unique and funny names that can be easily remembered, like cloud cover, hammer, gravestone doji, three black crows, etc.
This pattern is so flexible that it can be easily combined with Western indicators.
When combined with your favorite technical indicators like moving averages, trend lines, RSI,.it becomes a powerful technical analysis tool and gives traders an upper edge.
Japanese candlesticks can be used in any type of market where there is a glimpse of human emotion, as this pattern reflects human emotions in charts.
It is used in swing trading, day trading, futures and options, equities, foreign exchange, cryptocurrency, and any type of market.