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How to Read a Japanese Candlestick

From , former About.com Guide

8 of 10

Determining A Bearish Period
How to Read a Japanese Candlestick

A bearish day will always be represented by a black or filled body of the candlestick. No matter how long the shadows are, which directions they are pointing, or the length of the body, the black body of the candlestick signals that the closing price was lower than the opening price. In other words, the black candlestick means that the currency pair’s price fell during that trading period. Notice that all three candlesticks appear quite different, but they are bearish candlesticks.

As with white candlesticks, some black candlesticks are more bearish than others, but that goes into more advanced candlestick charting. But I will add that the candlestick showing the body without any shadows is extremely bearish. The arrow is pointing to the most bearish of the three candlesticks.

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