Why Are Japanese Candlesticks So Popular?

Japanese candlesticks are highly regarded for the wealth of information they offer. Each candlestick reveals:

• The direction of price movement,
• The opening and closing prices during the selected time frame,
• The highest and lowest prices reached during this period.

By analyzing how candlesticks relate to one another, traders can identify trends. Here are a few examples in one image:

While spotting a trend is relatively simple, recognizing its beginning is more challenging. Fortunately, several candlestick patterns help predict reversals or new trends.