It shows similar characteristics to Japanese candlesticks, but calculates an average range to gain a better understanding of price dynamics. Calculating the opening of the next candle is done by taking into account the prior open and close of the previous candle. When the price is in a true downtrend and an uptrend, Japanese candlesticks are red, whereas red and green Japanese candles will be green when the price is going up. (AKA MOMENTUM CANDLES)