JapaneseCandlestick

Japanese candlesticks are a technical analysis tool used in financial markets, and are one of the most common ways to understand price movement. They were invented in Japan in the 18th century, and they display price details over a specific period of time (usually a minute, hour, day, week).

A Japanese candlestick consists of three main parts:

1. Body: Represents the distance between the opening price (Open) and the closing price (Close) for the period. If the closing is higher than the opening, the candle is usually green or white (bullish). If the opening is higher than the closing, the candle is red or black (bearish).

2. Wick: Represents the highest and lowest price reached during the period of time. There are two lines extending from the body, one from the top and the other from the bottom.

3. Shadow: The distance between the highest and lowest price points.

There are several models of Japanese candlesticks, such as:

- Bullish: When the price closes higher than the opening price.

- Bearish: When the price closes lower than the opening price.

- Bullish Engulfing: When the second (bullish) candle closes larger than the first (bearish) candle.

- Bearish Engulfing: When the second (bearish) candle closes larger than the first (bullish) candle.

These candles are mainly used to analyze trends and look for buy or sell signals.