Firstly, it is vital that you understand how to read the chart. The Japanese candlesticks consist of 2 different bodies - real and hollow. Real body indicates that the open price is higher than the close price, while hollow body indicates that the open price is lower than the close price. The upper shadow of a body shows the high price and the lower shadow shows the low price. By using logical thinking, you can roughly understand the current competition between the buyers and sellers in the market.
Besides understanding the current competition, you should also understand the current market trend. You should analyze whether currently is a bearish or bullish market. Because, by doing so, you will likely to know who is the majority in the market, the buyer or seller. This will ultimately affect the frequency of the price cycle in the market, in which you will be able to analyze deeper to find possible pivot points to reap short term profit.
Lastly, after knowing the basic and the general overview of the market, you should learn how to read specific Japanese candlestick indicators in current market. While you can stuff jargons like marubozu, shooting star, engulfing pattern et cetera into your brain, these jargons cannot be practically placed into play. You should first open a demo platform in any broker and monitor the Japanese candlestick chart, try to read the candlesticks, understand the current competition and predict the future price. This will be deemed as a more practical approach in analyzing the Japanese candlestick charts.
In conclusion, it is very easy to read the Japanese candlestick patterns in Forex. However, you will require great patient and experience. Reading the chart is like riding a bicycle, once you learned it, you will get better and you will never forget.
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