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Pity the poor bar chart. It’s old, it’s tired, it has lived a long and fruitful life, but it should be laid to rest. Japanese Candlestick financial price charting has successfully made the leap from centuries-ago Japan to the modern day.

What are the Candlesticks, how are they different, and how are they better? They are Bar Charts With Attitude. You know what a bar chart looks like – a vertical line showing the opening price, the closing price, the high, and the low. There’s a tiny little wing on the left side of the line to show the opening price, and another little wing on the right side to show the closing price. You can tell at a glance whether prices closed higher or lower that day. But it looks pretty sterile, doesn’t it? And if you happen to be watching the computer screen when price data is being delivered in real time, you can watch that little wing on the right side move up and down. But it’s hard to see any romance going on.

Imagine this now: the space between the wings is fattened-out into a cylinder. If the closing price (or real-time price) is higher than the open, then the cylinder is left blank, or “white.” But if the closing price (or real-time price) is lower than the open, then the cylinder is filled in with black. The effect is quite eye-catching. You find yourself being able to understand the traders’ thinking, as a group, and watch their group drives upon the market, right in front of your eyes.

Japanese Candlestick price display will make a mind-reader of you, which is good; because the more you understand the underlying psychology behind traders’ actions, the better trader you can be.

By: William Kurtz

About the Author:
The Candlesticks have made the bar chart obsolete, and Candelaabra power-charges the Candlesticks. Candelaabra is available individually or as part of a risk-free joint 30-day trial of Candelaabra and of Genesis’ “Trade Navigator” financial platform, at http://www.candelaabra.comGet the risk free trial now! The price is rightWilliam Kurtz
CandleWave, LLC