Japanese candlesticks are highly regarded for the wealth of information they offer. Each candlestick reveals:
- The direction of price movement,
- The opening and closing prices during the selected time frame,
- The highest and lowest prices reached during this period.
By analyzing how candlesticks relate to one another, traders can identify trends. Here are a few examples in one image:
While spotting a trend is relatively simple, recognizing its beginning is more challenging. Fortunately, several candlestick patterns help predict reversals or new trends.
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