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A version of a candlestick chart is a hollow candlestick chart, where both fill and color are used to represent different price relationships: [5] Solid candles show that the current close price is less than the current open price. Hollow candles show that the current close price is greater than the current open price.
The aspects of a candlestick pattern. A candlestick chart (also called Japanese candlestick chart or K-line [8]) is a style of financial chart used to describe price movements of a security, derivative, or currency. Stock price prediction based on K-line patterns is the essence of candlestick technical analysis.
A more common version of line break charts is a “three-line break” chart, which indicates that for a market reversal to occur (a new line that forms in the opposite direction to the previous lines), the price will have to break above or below the previous three lines depending on the direction of the lines. [9]
On a technical analysis chart, a gap represents an area where no trading takes place. On the Japanese candlestick chart, a window is interpreted as a gap. Gaps are spaces on a chart that emerge when the price of the financial instrument significantly changes with little or no trading in between.
Ichimoku trading system example in the forex market for NZDCAD pair. Ichimoku Kinko Hyo (IKH) (Japanese: 一目均衡表, Hepburn: Ichimoku Kinkō Hyō), usually shortened to "Ichimoku", is a technical analysis method that builds on candlestick charting to improve the accuracy of forecast price moves.
An OHLC chart, with a moving average and Bollinger bands superimposed. An open-high-low-close chart (OHLC) is a type of chart typically used in technical analysis to illustrate movements in the price of a financial instrument over time. Each vertical line on the chart shows the price range (the highest and lowest prices) over one unit of time ...
Like standard candlesticks, a Heikin-Ashi candle has a body and a wick, however, they do not have the same purpose as on a candlestick chart. [5] The last price of a Heikin-Ashi candle is calculated by the average price of the current bar or timeframe (e.g., a daily timeframe would have each bar represent the price movements of that specific day).
Seiki Shimizu (清水 正紀, Shimizu Seiki, born 1915 in Japan) is best known for his work as an author writing about Japanese candlestick charting techniques used to analyze and evaluate stocks in his highly regarded book The Japanese Chart of Charts.