Single Candle Types

Reading the single candle marks the beginning of Japanese candlestick analysis. The three purposes of identifying the single candle are: 1. To understand the players' psychology behind the formation of the candle. 2. To investigate the relationship between one candle and the candles that precede it, and from this investigation, to interpret any changes to the players' psychology that arise from the patterns that emerge. 3. To act by making a decision on whether to buy, hold, or sell through the patterns that emerge.