First TIP Japanese Candlesticks

Japanese Candlesticks

In the 1600s, the Japanese developed a method of technical analysis to analyze the price of rice contracts. This technique is called candlestick charting. The interest in candlestick signal analysis in the United States is credited to Steve Nison. Over a period of 3 years ,after extensive research Steve came up with the publication "Japanese Candlestick Charting Techniques", published in 1991.
Candlestick charts display the open, high, low, and closing prices in a format similar to a modern-day bar-chart, but in a manner that extenuates the relationship between the opening and closing prices. Candlestick charts are simply a new way of looking at prices, they don't involve any calculations.


The interpretation of candlestick charts is based primarily on patterns. The most popular patterns are

Bullish Patterns

• Long white (empty) line
• Hammer
• Piercing line
• Bullish engulfing lines
• Morning Star
• Bullish doji star

Bearish Patterns

• Long black (filled-in) line.
• Hanging Man
• Dark cloud cover
• Bearish engulfing lines
• Evening star
• Doji Star
• Shooting Star

Reversal Patterns
Long-legged doji
Dragon-fly doji
Gravestone doji
star
Doji star.


Neutral Patterns

• Spinning tops.
• Doji
• Harami
• Harami Cross