Stock Indices Trading Japanese Candles
Indices Trading with Candle
Brief History
Candlesticks were created in the 18th century by the legendary rice trader called Homma Munehisa to give an overview of the opening, high, low and closing market stock indices price over a given period of time.
They were used by legendary rice trader to predict future market indices trading prices. After he dominated the rice market, Munehisa eventually moved to the Tokyo exchanges where he gained a huge trading fortune using this trading analysis. He is said to have made over a hundred consecutive winning trades.
Types of Stock Indices Trading charts
There are Three types of charts used in Indices: Line, bar & candlesticks.
Line - plots a continuous line connecting closing indices prices of indices.
Bars- displayed as sequence of OHCL bars. OHCL represents OPEN HIGH LOW & CLOSE. The Opening stock indices price is displayed as a horizontal dash on left & closing stock indices price as a horizontal dash on right.
The main disadvantage of a bars is that it is not visually appealing, therefore most traders don't use them.
Candlesticks Patterns - Japanese Candlestick Charting Techniques - these use the same stock indices price data as bar charts (open, high, low, and close). However, they are displayed in a much more visually identifiable way which looks like a candlestick with wicks on both its ends.
How to Analyze Japanese Candlestick Charting Techniques
The rectangle section is known as body.
The high and low are described as shadows & plotted as poking lines.
The color is either blue or red
- (Blue or Green Color) - Indices Prices moved up
- (Red Color) - Indices Prices moved down
Most indices trading platforms like the MT4, use colors to mark the direction. Colors used are blue or green: when stock indices price moves up, red: when stock indices price moves down.
Candle Sticks Vs. Bar Stock Indices Trading Chart
When candles are used it's very easy to see if the stock indices trading price moved up or down as opposed to when bars are used.
The Japanese Candlestick Charting Techniques also have very many formations that are used to trade the Indices Trading market. Japanese Candle Charting Techniques - candles patterns have different technical analysis interpretation & the most common Japanese Candle Charting Techniques are:
The above Japanese Candlestick Charting Techniques and Patterns is what makes the Japanese candlesticks popular among stock indices trading technical traders & it is why this type of analysis are the most widely used when it comes to analyzing the stock indices trading market. The analysis for these Japanese candles pattern formations in indices trading is the same as that one used in stocks trading - Japanese Candle Charting Techniques.
Drawing japanese Candlesticks Stock Indices Charts on MetaTrader 4 Software
To draw these on the MT4, select the MetaTrader 4 charts drawing tools within the "MT4 Toolbar" - shown below.
To view this tool-bar in MetaTrader 4 go to 'View' Next to file at top left corner of the MT4 Platform, Click 'View', Then Click 'Toolbars', Then check the 'Charts' Button Key. The above tool bar will appear.
Once the above toolbar, appears you can then choose the type you want to convert to, If you want to view using the bar format, click the bar tool button as displayed above, for line format click the line tool button key, for Japanese candles format click the "candlesticks tool button".
Indices Trading Japanese Candlesticks. Japanese Candlesticks Indices Candles Patterns - Indices Trading Using Candlesticks. Indices Trading with Candlestick - How to Trade with Stock Indices Candle Pattern
