What is a Japanese candlestick?
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“.