The Japanese candlesticks differ in the currency market from the stock market, as the Forex market is not much subject to gaps like the stock market, so in this article we will discuss the most important and famous Japanese candlesticks.
1. Doji Candlesticks
Doji candlestick pattern is known that the opening price is almost equal to the closing, where the key focus is on the candlestick’s shadow rather than its body because the shadow is larger than the body in all its different situations. The Doji candlestick type differs according to the opening and closing.
When a Doji candlestick pattern appears on the chart, this means that the trend is exhausted and thereby there is a probability, not a confirmation, of witnessing a change in direction.
Doji candlesticks in the stock market differ from the Forex market because of the presence of gaps in stocks, as shown in the following picture.
2. Marubozu Candlesticks
The Marbouzu candlesticks are the opposite to the Doji Candles as they are without a shadow and the candle is totally a body. Whenever the opening is far from the closing, the candlestick becomes more relevant as it indicates that the trend is strong, bullish or bearish, and would continue.
In the following articles, we will present the rest of the Japanese
candlestick patterns such that they do not exceed eight types.