Module 03 · Lesson 06 Theory Application Reflection Mastery check NextLesson 6 - Identifying Direction→
Japanese Candlesticks
Learn how candlesticks communicate market behaviour, then move from theory into application.
Read the market through candlesticks.
Technical analysis is the study of the language of the market. Japanese candlesticks form part of that language by helping traders interpret how price behaved during a defined period.
Video lesson
Vimeo
Japanese Candlesticks - Theory
Watch the lesson, then continue into an application moment before completing the mastery check.
Move from identification to interpretation.
When looking at a candlestick, do not stop at its name. Ask what the relationship between open, close, high and low tells you about the contest between buyers and sellers.
What information do you look for first?
Write a short note describing the first three things you would inspect when a new candlestick closes.
Japanese Candlesticks - Knowledge Check
Demonstrate that you can interpret the basic structure of a candlestick before progressing.
1. What does the body of a standard candlestick represent?
2. What do the wicks or shadows show?
3. What is the strongest Techne-style way to use a candlestick pattern?