All Candles Patterns PDF

How to Read Candlestick Chart for Day Trading

Brief History

Candlesticks were created in the 18th century by the legendary rice trader called Homma Munehisa to give an overview of the opening, high, low and closing market price over a given period of time.

They were used by legendary rice trader to predict future market prices. After dominating trading the rice market, Munehisa eventually moved to the Tokyo exchanges where he gained a huge trading fortune using this trading analysis. He is said to have made over a hundred consecutive winning trades.

Types of charts

There are 3 types of charts used in Indices: Line, bar and candles.

Line - plots a continuous line connecting closing prices of indices.

Bars- highligthed as sequence of OHCL bars. OHCL represents OPEN HIGH LOW and CLOSE. The Opening price is displayed as a horizontal dash on left & closing price as a horizontal dash on right.

The main disadvantage of a bars is that it's not visually appealing, therefore most traders do not use them.

Candlesticks Patterns - Best Candlesticks Book - these use the same price data as bar charts (open, high, low, & close). However, they are displayed in a much more visually identifiable way which looks like a candlestick with wicks on both its ends.

How to Interpret Best Candlesticks Book

The rectangle section is known as body.

The high & low are described as shadows & plotted as poking lines.

The color is either blue or red

• (Blue or Green Color) - Prices moved up
• (Red Color) - Prices moved down

Most trading softwares like the MT4, use colors to mark the direction. Colors used are blue or green: when price moves up, red: when price moves down.

Candlesticks Vs. Bar Chart

When candles are used it is very easy to see if the price moved up or down as opposed to when a bars are used.

The Best Candlesticks Book also have very many formations that are used to trade the market. Best Candlesticks Book - candles patterns have different analysis explanation and the most common Best Candlesticks Book are:

The above Best Candlesticks Book and Patterns is what makes the Japanese candles patterns popular among stock trade technical traders & it's why this type of stock analysis are the most widely used when it comes to interpreting the trading market. The analysis for these Japanese candles pattern formations in trade is the same as that one used in stocks trading - Best Candlesticks Book.

Drawing japanese Candles Charts on MetaTrader 4 Software

To draw Candlestick Charts on the MT4, select the MetaTrader 4 charts drawing tools within the "MT4 Toolbar" - shown below.

To view this tool-bar in MetaTrader 4 navigate to "View" Next to file at top left corner of the MT4 Platform, Click "View", Then Click "Tool bars", Then check the "Charts" Button. The above Charts toolbar will appear.

Once the above tool bar, appears you can then choose the type you want to convert to, If you want to view using the bar format, click the bar chart tool button as shown above, for line format click the line chart tool button, for Japanese candlesticks format click the "candlesticks chart tool button".

All Candles Patterns PDF. Advanced Candles Patterns Book PDF - Advanced Candles Patterns PDF. Bullish Stock Candles Patterns & Bearish Stock Candles Patterns & Candlestick Continuation Patterns PDF - How to Read Candlestick Chart for Day Trading