This website uses cookies to ensure you get the best experience on our website. You may read the full details in our Privacy Policy


What is a Japanese Candlestick in Forex Trading?

Unfortunately, stuff that seems obvious can be disastrously deceiving. 

History is littered with lessons of how assumptions ruined people's lives.

And most traders jumping into Forex can sometimes skip basics. Like crisply understanding the Japanese candlestick.

For technical analysts, a Japanese candlestick is the center of all their analysts.

A Japanese candlestick is a tool. It is used to chart the price movements of securities within a given time frame. The candlestick was the idea of a Japanese rice trader, Munehisa Homma.

Unlike other forms of illustrating price movements, the Japanese candlestick is the most detailed and easiest to use. Right off the bat, a trader would immediately know the state of price action within a given time frame.

It has the upper shadow, the body, and the lower shadow. 

The highest point of the upper shadow is the highest price reached; the top of the body is the closing price, while its bottom is the opening price. The lowest point of the lower shadow is the lowest price printed on a given time frame.

Keen to learn the forex market? Check out our other explainer articles in our Learn Forex blog. 

Need Help? 

Our dedicated support team are ready to answer all your questions. You can email us, or visit our Live Chat 24/7.

The website is operated by a group of companies. 360 Degrees Markets Ltd and ISPASS Technologies Ltd are companies of this group.
ISPASS Technologies Ltd, a software provider, is a registered company in Cyprus, with registration number HE394419 and has its registered address at Nikolaou Nikolaidi 3, Flat/Office 205, Paphos 8010, Cyprus.

360 Degrees Markets Ltd is a registered company in Seychelles, with registration number 8421720-1 and has its registered address at Suite C, Orion Mall, Palm Street, Victoria, Mahe, Seychelles. 360 Degrees Markets Ltd is regulated by the Seychelles Financial Services Authority under the Securities Dealer license number SD019.

All payments through Skrill and Neteller are processed by 360 Degrees Markets Ltd.

AltumFx does not accept residents of certain jurisdictions such as USA, Canada, Iran, North Korea and Russia.

Since AltumFX is not under the supervision of the JFSA or ESMA, it is not involved with any acts considered to be offering financial products and solicitation for financial services to Japan or in the European Union countries and this website is not aimed at residents in Japan or in the European Union countries.

Risk Warning: Trading any kind of financial instrument, including derivatives, carries a high level of risk and may result in the total loss of your investment. You should only trade with money you can afford to lose. Trading derivatives may not be suitable for all investors. By trading with AltumFx, you acknowledge your understanding of this risk warning and your agreement with the Terms and Conditions. AltumFx always recommends you seek independent advice if necessary.