Doji Candlesticks

There are three ways to read Japanese candlesticks when it comes to forex support resistance levels. You can check on forex firefly for more information. The three ways to read the candlesticks are as single candlesticks, looking for patterns that can be seen with just one candlestick, looking at two candlesticks, and the pattens that can be seen with two candlesticks, and three candlesticks, looking for patterns that crop up when you're dealing with three candlesticks. You will also want to look at the different patterns that occur with the entire market, but knowing how to read the candlesticks individually gives you a large bonus.

There are basic patterns that happen with candlesticks. The 'spinning top' is a pattern that has a fairly long shadow on both sides, with a thin body. Those often represent a change in the market, causing uptrend or down trends depending on which way the market was going to begin with. A Marubozu is a body with no shadow. That means that the open and sell price equaled the low and high prices. A white or green one means the market is very bullish, and a black or red one means the market is very bearish.

A doji candlestick means that the body is very, very short, often just a line. That means that there is indecision with the sellers and buyers. A doji with very high shadows on either direction is called a long legged doji, a doji with a long bottom shadow is a dragonfly doji, and a doji with no shadows is a four price doji. When you see a doji on your chart, check the prices with the prior candlesticks. After long green ones, it means no one is buying, after long red ones, it means no one is selling.