Candle Price Action Trading PDF

How to Analyze Price Action Trading Using Japanese Candles

The Japanese candles techniques also have very many price action pattern formations that are used to trade Indices. These trading price action setups have different technical analysis interpretation & the most common are:

The above indices trading action price patterns is what makes the Japanese candlesticks popular among technical traders & it's why this type of price action trading analysis are the most widely used when it comes to interpreting the market. The technical analysis for these trading price action pattern formations in indices trading is explained in the above candlesticks price action lessons.

How are Candlesticks used to Interpret Price Action Indices Trade Signals?

Stock Candlesticks - is a trading price representation that uses the price data (open, high, low, and close of price). These candlesticks resemble a candle with wicks on both ends.

Rectangle part of the candle-stick is known as the body.

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

Candle Price Action Trading - Candle Price Action Trading Guide

The color of the candle-stick is either blue or red

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

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

Candle Price Action Trading - Candle Price Action Trading Guide

When candlesticks trading price charts are used it's very easy to see if the price moved up or down as opposed to when a bar Charts are used.

candlesticks and candlesticks patterns are commonly used in price action strategies used to trade indices.