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Figure 12.4
What a Japanese Candlestick Chart Shows |
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Figure 12.4 is for a stock that closed higher than the open. You can see that because the body of the candlestick is open (white). If the stock had closed lower than the open, the body will be closed (black). All of this information will be important in learning to trade high-probability chart patterns. |
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Figures 12.5 through 12.21 show examples of various configurations of the Japanese candlestick. You'll be amazed at how complete a picture of the market or a stock that these charts can give you. |
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Figure 12.5 shows at a glance that the close was above the open because the main body of the candlestick is open (white). Because the close was above the open, this shows an up day. You can easily spot the high, the low, and the trading range for the day. |
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Figure 12.5
Up Day Candlestick Chart |
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