OANDA:GBPJPY   British Pound / Japanese Yen
The anatomy of a candle tells us a lot of information about price action. The high to the low of the candle tells us what the trading range was for the session. The real body tells us the day was bullish if the candle is green and bearish if the candle was red. The size of the real body tells us how committed traders were to the market. A small real body tells us traders where not very committed to the market. A tall green candle tells us buyers were fully committed to the market. This then suggests we should see further upward movement on the next candle. A tall red candle tells us sellers were fully committed to the market and we should then see further downward movement on the next candle. Also when a tall candle body is much larger than the average candles before it tells us that we should expect approximately a 50% retracement of the candle before price continues higher. Finally, the upper and lower wicks (shadows) represent the volatility of the session. So by looking at one candle we can tell how committed traders are to the market, we can see how volatile the session was and we can get an idea of how far we should expect the next candle to retrace it before moving higher.
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