Basics of Technical Analysis

Japanese Candlesticks 101

The first step to swing trading with technical analysis is learning to read Japanese candlesticks. At first glance the Japanese candlestick can seem very confusing to the new trader. These candlesticks are key components to our trading strategy, as they give us insight into what the markets buyers and sellers are thinking. After completing our lesson on Japanese candlesticks, you should have a much better understanding of what these candlesticks mean and how to read them on a stock chart. 

 

If you are new to Japanese Candlesticks start here!

 

Want to watch a FREE video lesson on candlesticks and  stock charts?

Japanese Canlestick, Basics of technical analysis

Stock Charts for Beginners

The collection of candesticks over and extended period of time is known as a stock chart. Stock charts are used by technical traders both swing and day oriented, to identify certain patterns that can lead to a predictable price move. A stock chart with show the price action for a selected time frame, that can be 1 weeks, 1 year, or even over the last 10 years. 

 

Once you have an understanding of Japanese Candlesticks, it's time to learn about stock charts.

stock chart, stock charts, basics of technical analysis

Now that we have an understanding of what Japanese Candlesticks are it's time to take a look at dual candlestick patterns. Meaning formations or signals made from two Japanese Candlesticks.  

 

Take a look at Japanese Candlestick Dual Patterns for beginners.

 

Want to watch a FREE video lesson on candlesticks and  stock charts?

Japanese Candlestick Dual Patterns