japanese candlestick pattern by steve nison in hindi

Upper shadow: It indicates the high point where a stock closed.Central Body:It’s a rectangular body that connects the opening and closing price of a stock.There are 3 main components in a bullish candle: In a bullish candle the closing price of a stock is always higher than the opening price. The candles in a candlestick chart can be classified into bullish and bearish candles, similar to the bars in a bar chart.

The main difference is that in a candlestick chart the opening and closing prices are shown by a rectangular body, instead of a left and right tick on the central line.

Technical Analysis: Candlestick Chart AnatomyĪ candlestick chart isn’t much different from a bar chart. Later in 1980’s Steve Nison wrote a book on candlestick patterns naming, “Japanese Candlestick Charting Techniques”, which is still referred by the traders to get the basics of candlestick charts. He organized this ancient wisdom and made use of Japanese candlestick charting, which became a big success. Homma Munehisa (1724-1803), was a rice trader from Sakata, Japan, is known to be the person who brought the candlestick pattern into practice. Till 1710, only the physical rice trading was taking place, but then came the concept of a ‘coupon’, with a promise to provide rice in near future. In Japanese method of technical analysis, it is called the ‘candlestick Pattern’ or simply the ‘Japanese Candle’. In early 1600’s, the candlestick charts are assumed to be used for trading rice in Japan. The history of candlestick pattern starts from the 16 th century. However, it isn’t much difficult to understand, let us know a bit about the history of candlestick charts and how did it come into practice. In this chapter, we will let you know what a candlestick chart pattern is and how it’s different from a line chart or a bar chart. Now we have understood what the line charts and bar charts in previous chapter of tutorial, the next thing is the candlestick pattern. Candlestick charts are more commonly used in technical analysis of stocks. In other words, candlestick chart is designed by merging line chart and bar chart patterns.

5 Basics of Technical Analysis for BeginnersĪ candlestick chart displays price movements thru plotting of open, high, low, close prices of stock, currency or derivative on the chart.

3 Technical Analysis: Candlestick Chart Anatomy.

Japanese candlestick pattern by steve nison in hindi