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How to Read a Japanese Candlestick

By , About.com Guide

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Determining The Closing Price

On a clear or white (bullish) period, the closing price will be positioned at the top of the candlestick’s body. This is because the price opened lower (at the bottom of the candlestick’s body) and closed higher (at the top of the candlestick’s body). Therefore, the currency pair experienced a bullish trading period. The arrow points to the closing price on the candlestick.

On a black or filled (meaning bearish) period, the closing price will be positioned at the bottom of the candlestick’s body. This is because the price opened higher (at the top of the candlestick’s body) and closed lower (at the bottom of the candlestick’s body). Therefore, the currency pair experienced a bearish trading period. The arrow points to the closing price on the candlestick.

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