Japanese Standard is a trend strategy based on identifying candlestick models.
The signal to open a trade is the appearance of a candlestick in a different color that covers previous candlesticks.

How do I read candlestick signals?

Trading will require only the candlestick chart with a time frame of 5 or 15 minutes.
Switch to the Japanese Candlesticks chart.
The price chart is now a series of alternating red and green candlesticks of different sizes.
Quotes take the form of columns at equal time intervals.
If an asset price has risen over the selected period, the candlestick is colored green;
if it has fallen, red.
If several candlesticks of the same color form one after another, you have a trend.

What candlestick models are saying

By watching both how the candlesticks’ color changes and their size, you will get a signal to open trades.
In this strategy, you need to learn to identify two candlestick models.
The first is when 1 candlestick appears and its body covers the previous candlestick(s) of the opposite color.
For example, the body of a red candlestick covers the bodies of green ones. This indicates the possible start of a downtrend.

If a green candlestick is covering the length of red ones, upward price movement is most likely to follow.

The second model is when not 1, but 2 candlesticks are covering the body of a candlestick of the other color.
For example, when 2 small red candlesticks have covered 1 green one. This indicates that the downtrend will likely continue.

Or when 2 candlesticks cover the previous red one, this indicates the probable continuation of an uptrend.

Open a DOWN trade

Wait until the body of the green candlestick is completely covered by 1 or 2 red candlesticks.
The expiry time must either equal or be twice as great as the specified time frame.


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