Japanese Candlesticks on Olymptrade: How they work

View at the left-downward side of your platform screen.

Click on "Chart types button."

Then Select the "Japanese Candlesticks" and will appear on your screen.

Candlestick formations, or patterns, offer cues for traders to open or close positions. Divided into reversal and continuation patterns, traders wait for specific formations to appear, then act accordingly.

The Hammer pattern is a trend reversal indicator. Visually, this candlestick looks like a hammer with a small body of any color and a long lower shadow. There is practically no upper shadow. At the same time, the lower shadow is usually twice as long as the body.

The Shooting Star pattern is a trend reversal indicator. Visually, this candlestick looks like an inverted hammer, with a small body of any color and a long upper shadow. There is practically no lower shadow. At the same time, the upper shadow is usually more than twice as long as the real body.

Doji is an indicator of closing due to indecision in the market. It usually appears when the supply and demand in the market are at an equilibrium. Doji looks like a cross: the opening price is virtually equal to the closing price, and both shadows are long.

Bullish Engulfing is a combination where the boundaries of the body of a green candle are larger than the boundaries of the body of a red one. The green candle follows the red one and completely engulfs it. This means that the asset's price has risen more than it has fallen before.

Bearish Engulfing is a combination where the boundaries of the red candle body are larger than the boundaries of the green candle body. The red candle follows the green one and completely covers it. This means that the asset's price fell more than it had grown before.

A Piercing Pattern is a combination where the body of a green candle starts below the body of a red candle. The green candle follows the red one, while the closing price of the green candle is in the area of the upper part of the red candle body.

Dark Cloud Cover is a combination where the body of the red candle starts below the body of the green candle. The red candle follows the green one, while the closing price of the red candle is in the area of the lower part of the green candle body.

Bullish harami is a combination where a long red candle is followed by a shorter green candle. In this case, the body of the green candle does not exceed the boundaries of the red body.

Bearish harami is a combination where a long green candle is followed by a shorter red candle. In this case, the body of the red candle does not exceed the body boundaries of the green candle.

The three Stars in the South pattern are formed on a downtrend. It consists of three candles. Each subsequent candle is shorter than the previous one. In addition, the minimum price increases from candle to candle.

The Bullish Doji Star pattern begins with a long red candle. It is followed by the doji candle. It is located below the previous candle, and there is a small gap down between them. The third candle is also green. Its body is more than the body of the first red candle and almost covers it.

The Bearish Deliberation pattern is the reverse of the three Stars in the South pattern. Bearish Deliberation is formed on an uptrend. It consists of three doji candles. The first and the second candle is approximately the same size and the third is much shorter than them. Opening and closing prices rise from candle to candle.

Downside Gap Three Methods is formed on a downtrend. It starts with two long red candles with a gap down between them. The third candle is green and its body covers the gap between the first two candles.