Thursday, January 8, 2009
Candlestick chart: Short and Long Shadow
Short vs Long Bodies
The shadow both on the upper and lower side of bodies indicates important information on the trading the session. Upper shadow shows session high while lower shadow indicates session low. Short shadow candlestick indicates that trading action is limited near to Open and Close. Long shadow candlestick means that trading action advance well past open and close.
Long Upper Shadow and Short Lower Shadow :-
Buyer controlled the trading session, and bid prices higher. Later on, sellers forced the price down and this is followed by a weak close, thus forming long upper shadow.
Long Lower shadow and Short Upper shadow:-
Seller controlled the trading session, and push the price lower. Later on, buyer force the price up and this is followed by strong close, thus forming long lower shadow.
The shadow both on the upper and lower side of bodies indicates important information on the trading the session. Upper shadow shows session high while lower shadow indicates session low. Short shadow candlestick indicates that trading action is limited near to Open and Close. Long shadow candlestick means that trading action advance well past open and close.
Long Upper Shadow and Short Lower Shadow :-Buyer controlled the trading session, and bid prices higher. Later on, sellers forced the price down and this is followed by a weak close, thus forming long upper shadow.
Long Lower shadow and Short Upper shadow:-
Seller controlled the trading session, and push the price lower. Later on, buyer force the price up and this is followed by strong close, thus forming long lower shadow.
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