‘1123, 253 PM FTMO Academy Technical Analysis Japanese Candlesticks Candlestick patterns are one of the most common price action techniques. There are literally hundreds of different candlestick patterns we can find online. Do we need to know all of them? Of course not. We have picked the most common and important ones we should know. They are easily spotted on Japanese candlestick charts. Table of Contents |.What are Japanese candlesticks? 2. The benefits of using candlestick patterns while trading price action hntps:ifacademyftmo.comilessonijapanese-candlesticks ane‘1123, 253 PM 2.4, Short day bearish 2.8. Bul 2.6, Bearish marubozu marubozu 27. Bullish closing marubozu 2.8.Bearish closing marubozu 29.Bullish opening marubozu 210. Bearish opening marubozu 2. The spinning top 212. The doji candlestick pattern 2.13. Long-legged Doji 214. Gravestone Doji 218. Dragonfly Doji 2.16. Bullish engulfing 217. Bearish engulfing What are Japanese candlesticks? Japanese candlesticks belong to the most popular methods of technical analysis. Searching for specific candlestick patterns was first used in the 18th century in Japan at the rice exchange. These were the very beginnings of technical trading. hntps:ifacademyftmo.comilessonijapanese-candlesticks FTMO Academy ane‘1123, 253 PM FTMO Academy Uo) etm (es 4 Uo) tm] (er 4 Ma MA ] Sey Bae) See) Sea Sol Beary Sel Se eS ry RoW TT ao 4 Re Ta Non. The benefits of using candlestick patterns while trading price action Among the greatest advantages of candlestick patterns are their simplicity and informational value. After a brief familiarization, the trader can quickly analyze market developments and determine what is happening in the market. Are buyers stronger than sellers, or vice versa? Can we expect the trend to cease, or on the contrary, could it gain in strength again? in fact, candlestick patterns can reveal the psychology of traders. Various candlestick shapes can suggest whether buyers or sellers are stronger. A typical example can be seen in the graph below. Long day bullish niipsifacademy.tmo.convlesson|apanese-canclesticks site‘1123, 253 PM FTMO Academy Starting with the easiest one, long day bullish candlestick. Long day bullish candlestick consists of just one candle with a long body and short wicks. This candlestick usually shows strength and it can be used as a “breakout” candle at the beginning of a trend. Traders don’t use long day bullish candlestick as entry or exit signals but more as a confluence with their ideas. Long day bearish Long day bearish candlestick is represented by a big sell candle body and small wicks. It signals a weakness in the market and the fact we should start looking for the possible start of hitpssfacademy.tmo.convless Vjapanese-candlesticks ane‘1123, 253 PM FTMO Academy Short day bullish The short bullish day candlestick is an easy to spot pattern. It consists of one candlestick. Short day candlestick is defined by its length. How short must the candle be? This is not 100% defined, so we should always use our discretion and review past trading periods to have a comparison. Short day candlestick is not used as an entry/exit signal. The short day candlestick pattern signals the fact that the price stayed in the range during a trading period and we can expect an expansion soon. They can be found in the larger patterns providing relevance. Short day bearish niipsifacademy.tmo.convlesson|apanese-canclesticks sie‘1123, 253 PM FTMO Academy This is the opposite of a short bullish day candlestick. Same as his bullish colleague, this candle is common but not so worthy on its own. We should always wait to spot it in a larger context and think about what are buyers or sellers trying to achieve in current market conditions. Bullish marubozu eared Avery simple and powerful candlestick pattern is called marubozu. Spotting marubozu candlestick is one of the easiest things we can do. It signals a real long body without an upper or lower wick. Bullish marubozu candlestick shows us one pretty obvious thing, the buyers stepping in the market. hitpssfacademy.tmo.convless Vjapanese-candlesticks ene‘1123, 253 PM FTMO Academy ‘+ If we spot bullish marubozu in an uptrend, trend continuation is likely. * Ifa bullish marubozu occurs in the downtrend, a reversal is likely to happen. Bearish marubozu Bearish marubozu has the same two uses as bullish one, they are just reversed. ‘+ If bearish marubozu happens in a downtrend, the trend is likely to continue. * If bearish marubozu occurs in the uptrend, reversal is likely to happen. The smart thing to do after we see a marubozu candle is to wait for further confirmation in tance or indicators. term of another candlestick patterns, support and resi Bullish closing marubozu hitpssfacademy.tmo.convless Vjapanese-candlesticks me‘1123, 253 PM FTMO Academy There is only one small difference from a bullish marubozu: a lower wick. This candlestick suggests that we had some sellers trying to step in after the candle opened but buyers were much stronger and closed higher. If a bullish closing marubozu appears in an uptrend, it gives us a signal of continuation. Another great location of bullish closing marubozu is at a key support area where we can expect the price to rise higher. Bearish closing marubozu Bearish closing marubozu is a bearish candlestick pattern which is signalled with a small upper wick and a big bearish body. There are 2 locations where we should be watching for hitpssfacademy.tmo.convless Vjapanese-candlesticks ane‘1123, 253 PM FTMO Academy Bullish opening marubozu Even though bullish opening marubozu has a small upside wick, itis a very bullish signal in the market. It shows the fact that buyers took control straight from the open and even though they met some sellers at the top, the bullish bias prevails. Bearish opening marubozu hitpssfacademy.tmo.convless Vjapanese-candlesticks one‘1123, 253 PM FTMO Academy Uperiniy Hr auwen i a Guyer cru oryrnuns Curran Mr apuety eu angina a possible trend reversal. The spinning top The spinning top candlestick pattern is a neutral candlestick. By neutral, we mean the fact that it doesn’t matter that much if the candlestick closes bullish or bearish, the important factor is the candlestick closing location. The spinning top candlestick pattern has a single candle with a small body and long wicks. It signals indecision in the market, the general rule of thumb is that if we see the spinning top candlestick at the resistance level, it's a short reversal signal. Vice versa, spotting the spinning top candlestick at the support area signals along reversal, The doji candlestick pattern hitpssfacademy.tmo.convless Vjapanese-candlesticks sone‘1123, 253 PM FTMO Academy Similar to the spinning top candlestick, doji is an indecision candlestick pattern. We can recognize a doji candle with a very small body with an open and close that are virtually equal. A doji is often found at the tops and bottoms of trends, so it is considered as a sign of possible reversal of the movement. That being said, more complex doji patterns can also be used in trend continuation. Although doji is an indecision candlestick pattern, there are three different variations that are going to help us make more educated trading decisions, there are long-legged doji, gravestone doji, and dragonfly doji Long-legged Doji hitpssfacademy.tmo.convless Vjapanese-candlesticks ane‘1123, 253 PM FTMO Academy Sure Uo We Spiny Sep Car uneoueR, Horyrnao Hero Wire HUERee Une Se PUsoie reversal in play. Gravestone Doj Gravestone Doji is a bearish candlestick pattern. It shows us the fact that buyers tried to step in, but sellers strongly overcame them and pushed the price back to open. In an uptrend, gravestone doji indicates that the market is ready to turn around. In a downtrend, we can use a gravestone doji as our continuation signal. Dragonfly Doji hitpssfacademy.tmo.convless Vjapanese-candlesticks rane‘1123, 253 PM FTMO Academy Dragonfly doji a bullish candlestick pattern. It shows us the fact that sellers tried to step in, but buyers strongly overcame them and pushed the price back to open. In a downtrend, dragonfly doji indicates that the market is ready to turn around. In an uptrend, we can use dragonfly doji as our continuation signal. Bullish engulfing A bullish engulfing is the first 2 candlestick patterns we have. It forms with a small red candle on the left and a big green candle on the right. The big green candle on the right has to completely overlap/engulf the candle on the left. hitpssfacademy.tmo.convless Vjapanese-candlesticks 139‘1123, 253 PM FTMO Academy Bearish engulfing forms with a small green candle on the left and a big red candle on the right. The big red candle on the right has to completely overlap/engulf the candle on the left. The lesson questions are based on the knowledge that is acquired during a selected lesson. ‘Some of the questions might have educational purposes and it might be harder to know the answers based on the lessons’ theory. This is due to the fact that the questions also act as educational material for the final exam. You have infinite attempts to pass each lesson. Question rules: All questions have multiple-choice responses. Therefore, one or more answers can be selected as correct. Most of the time only one answer is correct, however, you should still pay attention to multiple-choice possibi hitpssfacademy.tmo.convless Vjapanese-candlesticks sane‘1123, 253 PM FTMO Academy Not defined Three hours candlestick chart ‘One-day candlestick chart 5-minute candlestick chart What parts are Japanese candlesticks made of? Body, wick and candle Body and tick Body, wick and handle Body and wick Where can we find the Japanese candlesticks pattern? Only once we choose a chart representation of the selected instrument in the form of a candlestick chart. Only in the trading platform. Only on the bearish and bullish chart. Only on a one-minute candlestick chart. What type of candlestick pattern is Doji? Independent pattern hntps:ifacademyftmo.comilessonljapanese-candlesticks ast‘1123, 253 PM FTMO Academy Progress pattern What do the wicks of a candlestick represent? They indicate where the price has fluctuated relative to the closing prices. They show the highest and the lowest prices at which an instrument has traded over a specific time period, They show the highest and the lowest point of a bearish open position. They indicate liquidity of a specific timeframe. What is the name of candlesticks that close above the opening price? Eagle candlesticks Bearish candlesticks Bullish candlesticks Trend candlesticks Short day candlesticks are usually used as an entry or an exit signal. Yes or no? Yes No hntps:ifacademyftmo.comilessonljapanese-candlesticks ren‘1123, 253 PM FTMO Academy Doji candlestick pattern Long day candlestick pattern Marubozu candlestick pattern What type of analysis do candlesticks belong to? Sentiment Fundamental Statistical Technical What type of candlestick pattern is the Dragonfly Doji candlestick? Bearish pattern Bullish pattern submit hntps:ifacademyftmo.comilessonljapanese-candlesticks ane‘1123, 253 PM FTMO Academy +44 20 3322 2983 Whatsapp Contact options Privacy Policy Cookies @e@000 ABOUT US Evaluation Process Trading Objectives Why our Challenge? 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