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What is a Japanese candlestick?

A Japanese candlestick is a way of representing changes in the price of an asset.

It’s made up of colored rectangles and vertical lines, similar in appearance to the candlesticks that give it its name.

The colored rectangles are the “body” of the candlestick.

Cs1

The lines above and below the body are called the “shadows”.

Cs2

This type of chart was created in Japan, which is why they’re often called “Japanese candlesticks”.