Japanese Silver Candlesticks Patterns Silver Technical Analysis
Japanese XAGUSD Candlestick PatternsBrief History
Candle-sticks were created in the 18th century by the legendary rice trader called Homma Munehisa to give overview of the opening, high, low & closing market xagusd price over a given time period.
They were used by the legendary rice trader to predict future market xagusd prices. After dominating rice market, Munehisa then eventually moved to the Tokyo Exchanges where he then gained a huge fortune using this trading analysis. It is said that He made over hundred consecutive winning trades.
Types of XAGUSD charts
There are three types of charts used in Silver: Line, bar and candles.
Line - plots a continuous line connecting closing xagusd trading prices of silver.
Bars- displayed as sequence of OHCL bars. O H C L represents OPEN HIGH LOW & CLOSE. The Opening xagusd trading price is displayed as a horizontal dash on the left and closing xagusd trading 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 - these use the same xagusd trading price data as bar silver charts (open, high, low, and close). However, they in a much more visually identifiable way which resembles a candle stick with wicks on both ends.
How to Interpret
Rectangle section is called the body.
The high & low are described as shadows and drawn as poking lines.
The color is either blue or red
- (Blue or Green Color) - Silver Prices moved up
- (Red Color) - Silver Prices moved down
Most trading platforms like the MT4, use colors to mark the direction. Colors used are blue or green: when xagusd trading price moves up, red: when xagusd trading price moves down.
Candles Vs. Bar Silver Trading Chart
When candles are used it is very easy to see if the xagusd price moved up or down as opposed to when a bar Charts are used.
The Japanese techniques also have very many formations that are used to trade the Silver market. These patterns have different technical analysis explanation and the most common are:
The above patterns is what makes the Japanese candlesticks popular among technical traders and it's why this type of analysis are the most widely used when it comes to analyzing the xagusd trading market. The analysis for these pattern formations in silver trading is the same as that one used in stocks trading.
Drawing These Charts on MT4
To draw these on the MT4, choose the charts plotting tools within the "MT4 Toolbar" - shown below.
To view this toolbar in MT4 navigate to "View" Next to file at top left corner of MT4 Platform, Click "View", Then Click "Tool bars", Then check "Charts" Button. Above tool bar will appear.
Once the above toolbar, pops up you can then select the type you want to convert to, If you want to view using the bar format, click the bar tool button as illustrated above, for line format click the line tool button, for Japanese candlesticks format click the "candlesticks tool button".
