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How to Read a Japanese Candlestick

By John Russell, About.com

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Determining the Opening Price

The position of the opening price on the candlestick depends on the color of the candlestick.

If the body of the candlestick is white or clear, there was a bullish trading period. In a bullish trading period, the opening price is lower than the closing price for the period. In other words, the currency price rose during the period. So, the opening price is shown at the bottom of the candlestick’s body. Notice the arrow points to the opening price.

If the body of the candlestick is black or filled, there was a bearish trading period. In a bearish trading period, the opening price is higher than the closing price. In other words, the currency price fell during the period. So, the opening price is shown at the top of the candlestick’s body. The arrow points to the opening price.

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