It is also important to understand the link between this economy and the U.S. economy. The good news is that with just a basic understanding of the inner workings of this major economy, the Nikkei 225 can be traded with successfully.Japans economy is to a great extent dependent on its product exports. The majority of these exports are sent straight to the United States. Because of this, economic conditions within Japan are tightly linked to economic conditions within the United States. As a result, traders frequently observe the value of the Nikkei 225 index heading in the exact same direction as the three major United States indexes.Frequently, the Nikkei 225 performs in the same way as the Dow Jones Industrial Average during the previous day. This understanding by itself can provide traders with a good amount of profit. In many ways, its like having news for the following day arrive one day early. Even so, there are additional U.S. economic factors to take into consideration, such as NFP data, GDP, retail sales, manufacturing data, and more. Of those, the NFP (Non-Farm Payroll) report has a tendency to have the most significant influence on the value of the Nikkei 225.Both the GDP and retail sales numbers do disclose general U.S. economic conditions, as well as how healthy the economy actually is. Remember that the United States is Japans leading trade partner. Whenever U.S. economic conditions are poor, there will be a reduction in import levels coming from Japan. When this happens, there will be a reduction in the sales of Japanese merchandise that is marketed to U.S. consumers, thus impacting the Nikkei 225. Truly, the link between the U.S. and Japanese market cannot be overstated.Those who trade binary options should watch for unfavorable GDP and retail sales data, as each usually leads to active selling on Wall Street. Once this starts to happen, active selling inside the Nikkei 225 is likely to occur. Alternately, a favorable GDP and retail sales data is likely to lead to increases in value for both the Dow Jones Industrial Average and the Nikkei 225. Traders should look for the same outcome to arise whenever consumer sentiment data and manufacturing data is released in the U.S.The most basic strategy for trading with this index would be to analyze Dow market performance and then use this information to enter into trades just as the Nikkei 225 is opening for the day. As the session progresses, other factors will come into play, making it more difficult to forecast the movement. Early trading is best because U.S. market performance from the previous day is likely to provide an exact forecast for trading with the Nikkei 225 within a binary options platform the following day.Thanks for checking out Binary Options University. Obviously you are here to get a leg up on your Binary Trading. There is one major topic that must be talked about way up front. RISK Although you could make a lot of money trading these instruments, its also very easy to lose everything you invest. Please understand the Binary Risks before you invest any money. This site is for entertainment purposes and should not be held responsible for any losses you may incur. Advertising dollars are generated by clicking on some of the outbound links. You can learn more about this on our Privacy Policy or by using our. Happy TradingJapanese candlesticks are the most used technical tool, mostly they use it in naked trading which does not mean you trade in front of computer naked, you can keep your clothes on. It means that when you do technical analysis you have chart free without any indicator except japanese candles. Obviously they plan now the most important role but they can do that beacuse each japanese candle gives us enough information and if we form them together and look at them, they form patterns from which we can indicate where the price will go in future.Japanese candle will show us based on the time frame of course where is the open and close price and also the highest and lowest peak in the specified time. So if we will use hourly chart, means that one japanese candlestick will represent one hour and will give use information where the price was the highest in this hour and where it was the lowest and also the open and closing price as we said. Same goes for all other time frames. Here is how japanese candle looks:As you can see we have on the left, bullish candle which is used in an uptrend and on the right we have bearish candle which represent downtrend. The bullish candle has the closing price higher then the opening price. You can see the upper shadow or also called wick which shows highest point that price reached and on the down side you can see the lower shadow or wick to where the price went down the most in period of time. This is the information you get from japanese candlestick but we have different forms of candlestick which can be used in trading.If you are following our school you remember this pin bar from pinocchio strategy. If we focus now on the right pin bar from the picture which is bullish one meaning it goes uptrending. You still have to know how to read such candlesticks. As you can see, the bears were pushing price down but the more we went too the end of the period, the more bulls were pushing the price up and managed to push it higher then the opening was. It closes a little lover that is why a little upper shadow or wick is made. After such candle, means that bulls are now in control and they have reversed the price to go uptrending and will more likely move up. Bearish or downtrending pin bar is opposite as you can see from the picture aswell.This kind of sub-japanese species of candle forms when there is almost the same open and close price which as you can see from the picture creates a small body and long shadows or wicks. Most usual doji candles have almost the same lower and upper shadow or wick lenght. But you can see that others also qualify as doji candle since the open and close price are almost the same.When you see a doji candle on a chart it means there is no specific direction and therefore there is indecision on the market. Eventually one side will prevail and move to that direction, so focus on the trend.This candle represent good indicator of strenght.
