A thorough analysis of the situation on the world market involves the use of the most effective and convenient tools that allow not only monitoring the current situation in detail, but also predicting the most likely changes over time. That is why many Forex players use Japanese candlesticks to model the market situation - graphical analysis, which will help you learn more about this page .
Candlestick analysis provides more options than any other market monitoring and forecasting tool. In fact, this is a chart that shows the current state of the market and allows you to predict the behavior of the trend in time, to foresee upcoming events.
Many brokers with a perfect reputation and a well-known name use candlesticks as a reliable tool. One of these firms is Alpari, namely here you can find analytical summaries using Japanese candlesticks.
The most popular candlestick analysis patterns
The most popular models for analyzing the market or its individual aspects are:
- "Tweezers";
- Doji;
- Inverted hammer, shooting star.
The designated models are used by brokers from all over the world. This is a set of candles, from 1 to 5. "Tweezers" - two or more candles are evenly spaced. One shadow is located at the same value level. Further changes can be determined by the nature of the shadow: if three upper shadows in a row follow one after one opposite the mark, then it is reasonable to expect a decrease in value.
The Doji model works a little differently. There are no differences in prices, the indicators of changes are shadows, as in the previous version, however, their placement may vary. The hammer appears on downtrends. He is a harbinger of further growth. But the "shooting star" indicates a fall in price (it consists of one candlestick, opens with a window up, has a short body and a long upper shadow).
These are just some of the most famous analysis models, in general there are quite a few of them, and they are worth studying and using in practice to achieve high results in trading.
