In order to read Japanese candlestick patterns, you'll need to familiarise yourself with three elements on each candle: its colour, its body and its wick. Its colour tells you the direction of movement within the period, its body displays the market's opening and closing levels and its wick shows the high/low range.
Let's take a look at Japanese Candlesticks Analysis for some pairs
XAUUSD, “Gold vs US Dollar”
At the support level, Gold has formed an Inverted Hammer reversal pattern. The instrument may now go by the signal in an ascending wave. The goal of the correction might be 1825.00. Upon testing the resistance level, the price might bounce off it and continue the downtrend. However, the quotes may fall to 1790.50 without any correction.
NZDUSD, “New Zealand Dollar vs US Dollar”
On H4, at the resistance level, the pair has formed a Harami reversal pattern. The instrument may now go by the signal in a descending wave. The goal of the decline might be 0.6100. Upon breaking away the support level, the quotes might continue the downtrend. However, the price may pull back to 0.6185 before falling.
GBPUSD, “Great Britain Pound vs US Dollar”
On H4, at the support level the pair has formed a Hammer reversal pattern. The instrument may now go by the signal in an ascending wave. The goal of the pull back can be the resistance level of 1.2000. However, the price may pull back to 1.1865 and continue the downtrend without any correction.
Note: Any Forecasts presented in this section only reflect the authors private opinion and should not be considered as guidance for trading.
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