How to learn fast the language of Japanese candlesticks

When learning a new language, the first step is to learn the most often used words and the basic rules for building a sentence.

The same rules apply to the Japanese candlesticks language, but here it must be added a new ingredient for understanding the sense of the sentence: common sense.

There are many candlestick patterns, but what do you think if I tell you that I do not know their names? I have never been able to remember all the names associated with their patterns. And I am telling you, there is no need to know their names, the idea is to read them and use your logic and common sense when interpreting them. This way, you will not need to learn by heart.

Let’s start with the beginning:

The most accepted colors are green for a bullish candle and red for a bearish candle. The body of the candle represents the difference between the opening and closing price. If we calculate the difference between the upper and lower wick values we get the range of the day.

Depending on the type of the used graph, one candle represents one month on the monthly chart, one week on the weekly chart…