Market Analysis: Japanese Candlesticks Decoded | Free Course | Alison

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Market Analysis: Japanese Candlesticks Decoded

Learn how to analyze and trade financial markets with this popular technical analysis technique.

Free Course
Candlestick patterns are the ABCs of technical trading and can be used by traders as a layer of evidence towards a trade. In this short course, we’re going to explain the different charts used in finance and show you a comprehensive set of patterns you can use & apply when analysing any financial market. This course is designed to help aspiring traders and investors develop their edge, whether it in be stocks, forex, index or commodity markets.





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This course will teach you how to use Japanese Candlestick patterns to analyze and interpret financial markets. Of the many analysis techniques available to traders of the world's financial markets, Japanese Candlestick analysis is one of the most popular. This course will provide and explain an extensive set of patterns students can use with other techniques to spot potential reversals in the trend, and ultimately to help find trade setups and trading opportunities. This course will take you through the different chart types, why traders use Japanese candlestick analysis, how to conduct it and provide detailed explanations into over 20 patterns. Through engaging videos, detailed write-ups, real-life examples, tasks and an end of course test we'll take you through each pattern in detail, explaining how it develops and what it suggests is going on in a financial market.

Broken down into three modules, the course will first explain the different types of charts. In this first module, we will introduce three chart types and explain the pros and cons of each. This will lead us onto candlesticks which, by this stage, you will know what they are and how they form. Module two builds on this and introduces single candlestick patterns. These are the most simple form of pattern. We’ll explain twelve popular patterns to look for and what they tell analysts about the sentiment in a market.  Finally, in module three we’ll move on and look at multi-candle patterns. These are rarer patterns but, nonetheless, give vital clues about the state of a market. At the end of the course, you’ll really understand over 20 Japanese candlestick patterns, know how to use them to interpret the market and how they can be used to gain insight into a market. The course finishes with a comprehensive assessment of your abilities.

The course is designed to take you from beginner through to a good level of understanding. By taking the course, you’ll improve your financial skills. If you want to stand out from the crowd in a job interview for a financial services firm, start trading your own capital on financial markets with the aim of returning a profit or you want to learn a new skill then this course will enable that. 

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Learning Outcomes

By the end of this course, you will be able to:

  • Explain the similarities and differences between line, bar and candlestick chart types
  • Understand why traders favour candlestick charts
  • Describe how traders use Japanese candlestick pattern analysis to develop their edge
  • Identify 12 single candle Japanese candlestick patterns
  • Identify 10 multi candle Japanese candlestick patterns
  • Explain how each candlestick pattern forms
  • Understand the market conditions when each pattern is valid and when it isn't
  • Be able to describe what each pattern tells you about the sentiment of the market it appears in
  • Use and apply each pattern when analyzing live financial markets
  • Explain how patterns combine in shorter timeframes to create different patterns in longer timeframes


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