Indices Trading Japanese Candlesticks

Indices Trading with Candlestick

Brief History

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

They were used by the legendary rice trader to predict future market indices prices. After dominating the rice market, Munehisa eventually moved to the Tokyo exchanges where he gained a huge fortune using this analysis. He is said to have made over 100 consecutive winning trades.

Types of Indices Trading charts

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

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

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

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

Candlesticks Patterns - Japanese Candlestick Indices Charting Techniques - these use the same stock indices price data as bar indices charts (open, high, low, and close). However, they in a much more visually identifiable way which resembles a candle with wicks on both ends.

How to Interpret Japanese Candlestick Indices Charting Techniques

The rectangle part is called the body.

The high and low are described as shadows and drawn as poking lines.

The color is either blue or red

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

Most indices trading platforms like the MT4, use colors to mark the direction. colors used are blue or green; when stock indices price moves up, red; when stock indices price moves down.

Candlesticks Vs. Bars

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

The Japanese Candlestick Indices Charting Techniques also have very many formations that are used to trade the Indices Trading market. Japanese Candlestick Indices Charting Techniques - candlesticks patterns have different technical analysis interpretation and the most common Japanese Candlestick Indices Charting Techniques are:

The above Japanese Candlestick Indices Charting Techniques and Patterns is what makes the Japanese candlesticks popular among stock indices trading technical traders and it is why this type of analysis are the most widely used when it comes to analyzing the stock indices trading market. The analysis for these Japanese candlesticks pattern formations in indices trading is the same as that one used in stocks trading - Japanese Candlestick Indices Charting Techniques.

Drawing japanese Candlesticks Indices Charts on MT4

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

To view this toolbar on MT4 go to "View" Next to file at the top left corner of the MT4 Platform, Click "View", Then Click "Toolbars", Then check the "Charts" Button. The above toolbar will appear.

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

Indices Trading Japanese Candlesticks. Japanese Candlesticks Indices Candlesticks Patterns - Indices Trading Using Candlesticks. Indices Trading with Candlestick - How to Trade Trading with Stock Indices Candlestick Pattern