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Japanese candlesticks are the most common type of chart display, which is also an element of technical analysis. The theory of Japanese candlesticks is based on the fact that the size and relative position of the candlestick body and shadows, as well as the relative position and color of adjacent candles, can signal the continuation of the movement, slowdown or reversal of the trend. Certain candlestick combinations are called patterns. Technical analysis of Japanese candlesticks is a common type of analysis of financial instruments. Japanese candlesticks are widespread due to the clarity and ease of perception of the chart. The Japanese candlestick chart can be combined with various technical analysis tools, which greatly increases the chances of success.
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