Japanese Candlestick Analysis
figure 14.51 Integrating Candlesticks with Chart Patterns on the Hourly Chart of
EURUSD.
Source: MetaTrader 4figure 14.52 Potential Daily Reversal Times.If we quantized price from between the Zs, that is, Z1 to Z2, Z2 to Z3, and so
on, we get a series of rising Dojis or a Spinning Top. See Figure 14.56.
Therefore we see that selecting the right chart timeframe is critical to having
the most representative price displayed. To ensure that most traders and analysts
observe the same candlestick representation on the charts, only use the hourly time-
frame and any timeframe below it such as the 1‐min, 2‐min, 5‐min, 15‐min, and
so on. The problem starts when we employ charts above the one‐hour timeframe,
as charting and trading platform providers may be based in a different time zone.
A two‐hour candlestick that begins at noon and another at 1 p.m. will look very