Page 4 - Module 13 japanese Candlesticks

Module 13 – A-Z of Japanese Candlesticks

2. the elements of a candle

The candlestick’s body forms the rectangular shape between the opening price and closing price.
The body reflects the range between the opening and closing prices of the currency pair on that
certain period. Traditional bodies of candlesticks are coloured with black and white to easily define
the market direction.

Market direction can be either bullish or bearish, depending on the opening and closing prices of the
candlestick.

A white body indicates that the A black body indicates the
closing price is higher than the opposite; the closing price is
opening price, which means the
lower than the opening price,
price had increased over the which means the price had
period, which defines a bullish decreased over the period, which
candle. defines a bearish candle.

Candlesticks make it easier to see if the prices increased or decreased at the trading period. Other
traders use blue or green colours instead of white for a bullish candle, and red for a bearish candle
instead of black.

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