Introduction: East Meets West
Japanese candlesticks have the potential of giving confirmation to signals generated by traditional (Western) technical analysis techniques. Candlesticks are a complete approach to chart analysis that is sufficiently independent of Western techniques that value is added when they are combined. Moreover, since candlestick charts are created using the same information as Western bar charts (i.e., open, high, low, close), they can be smoothly related one to the other.