What is a Japanese candlestick ?

While we briefly covered Japanese candlestick charting analysis in the previous crypto lesson, we’ll now dig in a little and discuss them more in detail. Let’s do a quick review first.

They are used to describe the price action during the given time frame.

If the close is above the open, then a hollow candlestick (usually displayed as white) is drawn.

• If the close is below the open, then a filled candlestick (usually displayed as black) is drawn.
• The hollow or filled section of the candlestick is called the “real body” or body.
• The thin lines poking above and below the body display the high/low range and are called shadows.
• The top of the upper shadow is the “high“.
• The bottom of the lower shadow is the “low“.