Secrets of Japanese Candlestick professionalism – Lesson 4




Dear learner, we want to alert you for very important thing , in order not to be  your technical analysis of the Japanese Candles just superficial, technical analysis does not work and do not benefit and does not help to predict future price trends at all, the base of analysis Japanese Candlestick in our website: says you should not expect trends coming by reviewing the shape of the candle through its individual image, and even technical analysis have been correct and professional must learn three important things build on a number of tutorials coming in our educational website www.accurateforexsignals.info, and summed up these things in: 

(1) Learn the basic components of Japanese Candles.
(2) Methods of learning how to read Japanese Candlestick.
(3) Learn ways to explore the size of the momentum in the Japanese Candlestick.
(4) Learn methods of integrating Japanese Candlestick chart.
We will discuss all these matters in some detail to be able dear learner to master the use of candles in the Japanese technical analysis, and, as usual, we do not prefer lossless times in the words of theoretical and prefer practical education, so we start to identify the components of the Japanese Candlestick.

The basic components of the Japanese Candles:

Learning the basic components of the Japanese Candles are the first step adopted by learning how to read Japanese Candlestick properly, and in order to learn about these components you must know that the one candle is an analytical tool to reflect a series of events from the moment of opening price to the moment of the closing price during the period of time from the time called ("round trading") and this round returns to time frame chosen by the technical analyst, we add to this that the one candle does not ignore the discovery of higher prices and lower prices during that time period and that the essential difference between Japanese Candlestick charts and line charts.



Japanese Candlesticks Function:

The Japanese candlesticks in the total form are beginning from the highest price ("upper shadow if found") to the lowest price ("lower shadow if found") through the levels of the opening and closing, all of which are considered conflicts that took place between the involved parties in the round of trading, and the participants are sellers and buyers, and the rule of this tour is the closing price of the candle at the end of the trading period, Yes ,closure is a status of indicator balance among the parties, and technical analyst uses Japanese Candlestick for the purpose of translating and understanding situations of markets and then highlight areas of the prices that are changing the trends of rising to falling or from falling to rising, and the Japanese Candlesticks do not overlook the discovery times of fear the frequency and uncertainties that may affect market participants. 

Components of a single candle on the chart:

1. Open, which is the price at the beginning of each new candle during a period of time determined by the time frame.
2. High Shadow, which is the highest price level reached by the price of the candle during a period of specific time.
3. Low Shadow, the lowest price level and reached the price of the candle during a period of specific time.
4. Close, a price that the candle has ended and closed completely, and then it will have to open a new candle.
5. Real Body, a commercial term for what the price movement of the price of opening up to the closing price of the candle.

Each candle consisting of the previous data and candles differ  in the forms and names and expectations for the movement of the next prices, because the body and shadows of  candlesticks are key factors in changing forms and names and expectations of Japanese Candlestick, there are candles have long bodies, and there are candles have short bodies, there are candles without bodies, and there are candles have long shadows, and other short shadows, and also no shadows, and we will learn in our educational lessons later most important forms and the names of Japanese Candlestick, Japanese Candlestick function is to expect coming  prices on the chart.



Importance of Real Body: 

The real body is regarded as the standard compared to equilibrium with the buyer and sellers, the more the real body is long whenever it was referring to the fact that there is more momentum, both bullish momentum in the case of increasing the number of buyers or momentum Bearish in the case of increasing the number of sellers, while if the real body is short, it would indicate to the low momentum,
Whether the bullish momentum was low in the case of low numbers of buyers or low momentum Bearish in the case of low numbers of sellers, and this tour should be a specific period of time, and determined the time frame chosen by the analyst, and this can be said that monitoring of real bodies of Japanese Candlestick means control opportunities shift the balance between buyers and sellers, and this significant signal helps to discover  market sentiment , And therefore the anticipating of coming trends of prices on the chart, and knowing  are they rising trends or falling, or is it a period of confusion because of the emergence of trends and side price movement in the form of either side of the graph, If the tip of the balance turns towards increasing turnout of buyers in this case we say it happened ("revolutionary attack ") is expected to rise in price and candle appear in blue color, but if the tip of the balance turns towards increasing of turnout of sellers in this case we say ("Bear attack ") happened It is expected a decline in prices and candle appear in red, as shown in the illustration below. 



Japanese candlesticks on the time frames- Lesson 3



Hello to you again in the second part of a lesson how to determine the number of Japanese candlesticks on the frames, and in this part of the education we learn about the art of technical analysis, namely the time analysis of Japanese Candlesticks and the study of relationship of time and the number of Japanese candlesticks that appear on the chart.

How to know the number of Japanese candlesticks on time frames?

this way Is one kind of methods of analysis schedule, and this method adopts to draw a vertical line to the larger candle frame then move to smaller frame, This work is aimed to review the number of Japanese candlesticks in the small frames of time and that make up a single candle of time bigger frame and through carefully consider the small time frames candlesticks it can explore the charts patterns on the smaller time frames and thus seize the opportunities to enter more accurate.

Special instructions about Meta Trader:

Generally of the most important instructions for this method is that the first candle on the left side on smaller frame and the vertical line drawn on it, it does not fall within the total period of time that you want to know the number of its candlesticks on smaller frame, and in the case of the MetaTrader user (“system is used on Sunday " ), and the last candle on the right- side decree by a vertical line are included in the total time required. If the MetaTrader user by you (“system is used on Sunday " ), each of the two lines do not enter the two vertical lines within the target time period but candlesticks between the two lines is required candlesticks.

MetaTrader Comparison:

Face of comparison
MetaTrader uses data on Sunday
MetaTrader does not use data on Sunday
The week candle open Price
It is The open price on Sunday
It is the open price on Monday
The week candle close price
It is the close price on Friday
It is the close price on Friday

The following examples are special for Meta Trader does not use the system on Sunday

Example: If a technical analyst added two vertical lines For example, uses The Weekly Frame W1, and the first vertical line was on recent candle and The second vertical line is added in the blank area after this candle as it is new candle will be formed in the week following at a later time ("here important note if it is put a vertical line on the last candle on the right hand of the graph should put a vertical line on the blank area to the right of the graph "),   As if the vertical line put, for example, on the penultimate candle on the right hand of the graph, so a vertical line will be put on the last candle, and so, let us see how to apply it in practice on MetaTrader.

The first step: choosing Weekly time frame W1


Step Two: Choose the tool add vertical line


Step Three: Add the vertical lines
 (A) A vertical line on the last candle.
 (B) A vertical line in place of the next blank candle.

Image caption below the prices quoted from EUR / USD is the Weekly Frame and added lines on the period from Sunday, January 12th, 2014 to Sunday, January 19th, 2014 as we have said and we have already learned that the week on the Weekly Frame begins Sunday and ends on Sunday.


Step Four: Move to a smaller time frame such as Day Frame D1


Image caption below the prices quoted from EUR / USD is drawn with the Daily Frame 
That on Monday, January 13th, 2014 is the correct beginning to a new week of trading.
As we have said and we have already learned that the beginning of the week to correct Daily Frame begins on Monday and ends on Friday.


Then a technical analyst began reflecting on the candlesticks of the graph between the two vertical lines, through the transition from planned Frame the week to outline Frame Today, this method is as if a technical analyst gives an order to the program of technical analysis and say: "Show me the number of candlesticks for the time period of a full week.
According to the former instructions, the technical analyst should not fault in counting in number 6 because the first candle on the left hand  of the chart and which on it the first vertical line does not fall in the target time period and  does not fall within the candlesticks required to know its number on the smaller time frame, and the last candle is on the right hand painted with the vertical line automatically when the technical analyst moved to daily chart this candle entered within the required time period.
While if technical analyst moved to Frame four hours can be seen that the number of Japanese candles in a period of trading of the time one week, the number of Japanese candles on Frame 4 hours will be 30 candlesticks, this simple mathematical operations as 5 straight candlesticks along the daily Frame represents a time period of a week, and as the day is 24 hours, If with dividing the number 24 ("a 24-hour") on the number 4 ("represents a single candle of Frame 4 hours"), the results is the number 6 means that every 6 candlesticks a row along the Frame four hours constitute one day of trading, the multiplying of the number 6 ("represents a 6 straight candlesticks along the frame of four hours") × No. 5 ("represents the number 5 candles in a row along the daily Frame a period of time from the trading of one week") and the output is the number 30 , thirty candle straight along the Frame four hours represent time period of one week of trading, please see this chart illustration below of  timeframe 4 hours.

Step Five: Go to a smaller time frame such as Frame 4 hours.


Image caption below the prices quoted from EUR / USD is on the frame with four hours of attention that the first candle of four hours at the beginning of each day begins at 00:00 GMT. The beginning of Monday, January 13th, 2014


Here the analyst artistic can noted that the beginning of every new day is at 00:00 GMT if the timing of the closure of yesterday is the timing of the opening tomorrow day, with the exception of Friday because the timing of the closing for this day has  other conditions on the frames of time, for example, if we want to add a vertical line on any chart of any time frame and the target is to see the beginning of the day should add this vertical line at 00:00 GMT, Please pay attention to the timing of your trading station and that it works GMT, there are companies offering Forex trading stations other than the operating time different of GMT, Ask the Forex company you are dealing with what is the timing of the trading station.
In the caption picture below the you can see dashed vertical lines which are 5 lines reflect the opening price and the place to start when the first candle in each new day of trading, it starts at 00:00 GMT, while the two vertical lines on either side of the drawing they reflect the extent of trading during the period time of one week, as the example to explain it now, and the two vertical lines are the two lines conferred by technical analyst at the Weekly Frame and automatically appear on the smaller time frame.


All the above explanation is the correct way to mark the beginning of trading days starting from big Frame time as ("weekly Frame ") through small time frame such as ("daily frame") and the end of the frame smaller time (such as "Frame four hours"), please if you have in your mind any information about any other way about how to determine the beginnings of Japanese candles on different time frames.
So please remove it from your mind as long as you read in our educational lessons, even not to face conflicting information, and follow the ways of the special technical analysis to us then God willing is a very high degree of righteousness, and you will explore it yourself in learning our next applied lessons.

Here Important Notes:

If you followed this method in the days punctuated by an international official holidays in this case certainly that the number of Japanese candles will be different on the smaller time frames during the period of time from trading, for example, during the period from December 23 of each year until January 3 of the new year, the total number of Japanese candles, for example, daily Frame that make up the candle weekly and one is 4 daily candlesticks o daily Frame on the chart and not 5 daily candlesticks as used in the remaining weeks, because the reason given to the existence of holiday days of a  special anniversary birthday during that period.
In general that all the previous information in this tutorial is only just a quick overview on the topic of the time factor ("time frames ") and its relationship with candles Japanese, and we had a desire to draw your attention and show the quick glimpse about this method of discovering the number of Japanese candles on the different time frames, because the time factor is one of the main pillars in the arts, which are intertwined with technical analysis, which is used in candlestick analysis of foreign currencies, but also for the stock markets, and financial markets generally, the issue of adjusting plans and strategies of time analysis at the same time with the plans and strategies of price analysis using candlestick chart is a very important issue, especially when all these strategies are designed and equipped with professionally and properly, and then it is certainly that the results of the expectations of a technical analyst for trends future prices, God willing, will be correct and you will reach the desired goals.
We believe that you are waking up now through this important tutorial that the issue of choosing time frames should not be randomly and it is wrong that the person  opens some charts for any period of time and then begins to randomly draw lines on the candlestick He believes that in this way he analyzes the graph moves to another time Frame without awareness and without putting any principles define the terms of the transition between the different time frames, and ultimately surprising that prices are moving in completely different directions about his expectations, , and wondering why all this is happening? The reason is simply because this person does not know the foundations of choosing frames of time and conditions of the transition between them, generally we advise you not to choose a frame of time in random ways that does not fit with the plans according to the trading patterns of your own, we mean it in the words of summary Are your goals are Profit-taking in the short term, or in a long time span.
In the tutorial below and, God willing, we begin to learn the secrets of professional Japanese candles, they are four secrets shall anyone who wishes to succeed in technical analysis to get them to be able to translate situations of Forex markets and discover the best opportunities for purchasing and better sales opportunities not only that but also to determine the best levels to reap profits.


The relationship of temporal analysis and candlestick – Lesson 2



Introduction to Japanese relationship candles in time

Each candle reflects a specific time period, for example, if we used 1 minute time frame,  each candle reflects on the state of the market over the past 1 minute, so if We have opened 2 charts of candlestick first graph was using the time 5 minutes frame , and The second graph using  time-30 minutes frame, and _ even though the price is one in both charts _ only we will note that the number of candlesticks on the 5 minutes time frame is different from the number of candlesticks on the 30 minutes time frame, and why so that each individual candle on 5 minutes time frame takes five minutes  to form, While each candle individually on 30 minutes time frame takes thirty minutes to form, means that during one hour of trading , two candles are formed on half hour Frame, and formed 12 candle on Frame five minutes, and here we always note the existence of an inverse relationship between the number of candles and frame User, the more time frame is smaller the greater  number of Japanese candles during certain period of time, and whenever we used a big time frame,  Japanese candles will be little during a certain time period, and whenever we used Frame smaller whenever we have emerged a more accurate picture of price movements, and whenever we used largest time Frame whenever the graph and the wider graph tells us about the movement of prices over the long periods of time. Please see illustration below.


This is only natural, because, by example, when we examine the candle per the planned half-hour, it is made up of 6 candles on five minutes Frame, so two candlesticks in half an hour Frame are 12 candles on five minutes Frame, and it is natural that the price drops or rises on the 5 minutes Frame during the formation of a single candle on the half hour, and the application of this principle to all other frames if the review of the candlestick on more than a time frame at the same time.   

How to choose the time frames in MetaTrader

Practical Training: 


Open MetaTrader and you should know that when you choose the M1, this means that each candle on the chart represents a time period of 1 minute and recent candle hand remains in the right side of the screen graph in the case of active and moving to pass the 60-second time ends of the candle if every 60 seconds shaped candle new, and you can apply the same principle to all time frames:
Every 1 minute a new candle starts on the M1 * Frame
Every 5 minutes a new candle starts on the M5 * Frame
And every 15 minutes new candle starting on the Frame ** M15 *
And every 30 minutes new candle starting on the M30 * Frame
Every 60 minutes new candle starting on the H1 * Frame
Every 240 minutes a new candle starts on the Frame ** H4 *
And every 24 hours starting new candle on the Frame D1*
With the beginning of a new week on the chart start a new candle on the Frame W1 *
("Although the week on the chart in the Week Frame begins Sunday and ends on Sunday, however, on Monday is the correct beginning of each new week can be said in another way if the closing price is the price on Sunday beginning candle week on Frame W1, as well as the candle is the beginning of a daily Frame on Monday. *
Every month begins a new candle on the frame of the M1 * 

The gaps between the Japanese candlesticks:

Gaps occur because of the sudden news, or upon issuance of the general economic results or advertising when results of global economic news are released , These results were surprisingly contrary to all expectations of chroniclers analysts, or possible occurrence of gaps forming between the Japanese candlesticks especially on the daily candle Frame at the opening of markets pm Sundays, and the reason is due to the following: Since Friday is the last day of trading in the Forex, Saturday and Sunday are the days of vacation for traders in the Forex markets and the trading stations close and stop working and stop receiving broadcast spot prices to the spot market, while it is known to us all that the political or economic news do not stop, it is very possible the release of economic news surprise on Saturday or on Sunday, or the release of political decisions in the country on Saturday or Sunday, or things happening unexpectedly, God forbid, such as natural disasters , earthquakes , hurricanes and global accidents that affect the economic situation during Saturday or Sunday , and then postpone impact of this news on the charts until the opening of the market , with the opening of markets on Sunday evening, though there was such things occurring in on Saturday or Sunday , the price gaps will appear inevitably on the charts on candlestick at the opening of the markets on Sunday evening , and the gap is an empty space between two candles If there were gaps with the opening of markets on Sunday evening In this case, the artistic analyst can see an empty area between the closing candle on Friday and the opening of a candle day Monday, note that this does not appear on the linear drawing charts . 


How to cope with price gaps:

Try as much as possible not to open deals after time recent time on Friday.
If you open deals on Friday in the recent times, try to close these deals before the market closes.
If you are involved in a deal and remained installed for the new week and there is not a gap you open parallel Hedge to the installed deal.
If you are involved in a deal and remained installed for a week's new and updated gap, try as much as possible the closure of the deal at less loss as possible, especially if the gap exceeds +70 points, if price cringes 50% of the value of the gap has not been able to anticipate the next trend close the deal quickly as collateral to minimize loss.

Japanese candlesticks – Lesson 1




History of Japanese candlesticks:
Most traders do not prefer to talk about the past, preferring to focus on the market today and we also prefer this, but sometimes you must provide a quick historical overview to make it clear to you that this science a long time ago and we are still working it, the Japanese candlesticks of the most important methods of technical analysis of the markets money,  In the 17th century there was a Japanese businessman and mythical technical analyst named ("Homma Munehisa") and is widely credited with inventing the Japanese candlesticks, and his family was from the top traders in the rice and ("Homma") used candlesticks Japanese Analysis Art to study the morale of rice traders and approaches Emotional for these markets, and then succeeded in predicting the future movement of prices of rice, and his family became one of the richest people in Japan.
At the beginning ("Homma"), was watching the behavior of rice traders and began tracking prices of the opening and closing prices along with higher prices and lower prices that reach to the price of rice during certain time periods, and began to paint this data on graph paper in the form of a series of columns that looked like candlesticks from here it came the label ("candlestick").
Presently Japanese candlesticks evolved and became one of the stronger Science contemporary Technical Analysis, and for many novice traders, they believe that the Japanese candlesticks schemes are complex graphs, but, in our course we will teach you to master the art of trading using Japanese candlesticks charts, from through a series of tutorials that starting off now.
It is a duty on any serious trader wants to develop his skills in the field of technical analysis to learn Japanese candlesticks; we recommend and say please master in working out.

What is the Japanese candlestick charts

Is a charts and graphs in the form of a beautiful planning provide useful information on market sentiment and discover who they are the dominant force on it, whether they are buyers or are they sellers, and in the science of technical analysis called name ("bulls") on the buyers and the name ("Bears") on sellers.
Japanese candlesticks are beautiful charts that can be seen they are comfortable to the eyes of traders, when prices are in the case of high the bulls dominate the chart and the candlesticks color is blue and when the bears are in control of the chart the prices in case of falling and the candlesticks color is red.

How to prepare Japanese candlesticks on MetaTrader charts

Which comprises a single candlestick?


ANSWER: The candle is made up of the following:
1. Open, which is the opening price at the beginning of each new candlestick during a period of time determined by the time frame.
2. High Shadow, which is the highest price level reached by the price of the candle during a specific time period.
3. Low Shadow, the lowest price level and reached the price of the candle during a specific time period.
4. Close, a closing price that the candle has ended and closed completely, and will have to open a new candlestick.
5. Real Body, a commercial term for what the price movement of the price of opening up to the closing price of the candlestick.

Basics Japanese candlesticks

Each candle reflects a period of time determined by the trading of time frame.
Each candle tells us the story of the tour between buyers and sellers during the period of time specified by the time frame.
The lower shadow Serves as the bottom of candlestick which is the lowest price enables sellers to reach through a period of time from trading.
The high shadow as a summit of the candle, it is highest price buyers are able to access it during the period of time from trading.
Area closure of the candle is a measure of equilibrium between the sellers and the buyer and is determined to resolve trade round in his favor.
Neglect to focus on the closing level of the candle means a complete failure in the results of technical analysis.
At the close of the candlestick in the price less than the price of Open the candle color is red.
At the close of the candlestick at a higher price than the price of Open the candle color is blue.

The difference between the line charts and candlestick charts 




If the above information, there is a clear difference between the Japanese candlestick charts and line charts , because the Japanese candles show the movement of prices during the Specific period of time , the technical analyst can choose to replace period of time as it deems  appropriate By selecting the time frame on the chart , and then the essence  of  The difference between Japanese candles and line chart lies in the data given where That the line chart uses daily closing prices of currencies , which draws a solid line To each other in the form of a series of data over time , and the Japanese candlestick charts use 4 data which are , Open and the highest price and the lowest price and the price Close. 

Please note from now on
When we speak of the word ("Candlestick") or ("Candle") it refers to the one meaning of the word, that is a word ("candle"),  When we talk about the word candle, this word refers to a period of Time on the chart and technical analyst can specify the time period   by  Choose time frame.

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