A quick and easy explanation of what the Japanese candles mean and how they can be used might be in order. If you have this information at the ready, you can use it to examine your charts more carefully and see where things are headed with any given currency pair.
Here’s a list of all the Japanese candlestick patterns we’ve discussed previously:
- Spinning Top – Neutral
- Doji – Neutral
- White Marubozu – Bullish
- Black Marubozu – Bearish
- Hammer – Bullish
- Hanging Man – Bearish
- Inverted Hammer – Bullish
- Shooting Star – Bearish
You should keep these handy as you will surely encounter them on a nearly daily basis when you start trading. These are the types of candles that show up all the time for traders, so it just makes sense that you would want to have the ability to recognize them and know what you need to do when you see them as far as trading properly on your account.
To download a full-size Japanese Candlestick Pattern Cheat Sheet, click here: