Financial Tutorial  
Discuss about Equities in our Free Forum

Technical Indicators: Japanese Candlestick
All information are subject to terms of use

The principle of the Japanese candlestick graph is to represent each day by a line and a rectangle. The line goes for the highest price to the lower price of the day. The rectangle goes from the opening price to the closing price. The color of the rectangle depends of the level of the opening and closing price. If the closing price is higher than the opening, the rectangle is white, if the closing is lower than the opening, the rectangle is black.

All the Figures and their 'Nick Name'

Figure	Nick Name	Interpretation
	Marubozu of yin	Highly bearish
	Marubozu of yang	Highly bullish
	Closing yin bozu	Bearish
	Opening yin bozu	Bearish
	Opening yang bozu	Bullish
	Closing yang bozu	Bullish
	Toy (yin)	Uncertain
	Toy (yang)	Uncertain
	Dragongly	Reversal point
	Dragongly	Reversal point
	Pagoda	Suggest a reversal
	Long-legged identical opening & closing	Suggest a reversal
	Umbrella yin	Sale signal when it appears on top
	Umbrella yang	Purchase signal when it appears at the bottom
	Identical four prices	Reversal point

The above figures are based on one day. We have also some figures based on two days prices.
See Japanese candlestick NEXT.