What on Earth is a Japanese Candlestick?

Japanese candlestick charting is a excellent way to measure and forecast any kind of securities markets.  The system began in Japan in the 1700's in order to better track the price of rice.  Each candlestick is comprised of four elements which in concert with one another tell a concise story the day's trading.  Each candlestick can have an upper wick, a body and a lower wick.  They come in red for losing days and green for positive days.  The candlestick's shadows show the day's high and low and how they compare to the open and close. A candlestick's shape varies based on the relationship between the day's high, low, opening and closing prices.  I view the charts every day to keep abreast of the MBS market and its likely future trends.   Various patterns can be strong indicators of imminent change. See the examples below.