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General TradingW

Window

In Japanese candlestick charting, a gap between the closing price of one candle and the opening price of the next, equivalent to what Western technical analysts call a 'gap.' A rising window (upward gap) is considered bullish and often acts as support on pullbacks, while a falling window (downward gap) is considered bearish and typically acts as resistance on rallies. The concept originates from the Japanese rice trading tradition where these patterns were first identified centuries ago.

Example

A rising window formed on the daily chart when the stock opened $2 above the previous close, and the gap successfully acted as support when price pulled back two days later.