Hi you all,
can anyone explain to me what the shadows really mean to the maket? I learned at the PipsSchool that top and bottom shadows mean that buyers or sellers tryed to push the price up or down, unsuccessfully. And this is ok. But how does this translates to the market? Can you give me a real example of what "tryed to push the price up or down"means?
I understand the more the sellers the lower the price, but a seller is a seller when he or she decides to go short. And when the decision is taken the seller will be in the market (it is the body of the candlestick, isn’t it?). So, for example, what is the seller’s action to be represented by the bottm shadow?
I hope I managed to explain my doubts and have an enlightening answer!!!
Thank you Huck,
That’s ecxactly what I did but all doubts were cleared while using a demo account. That allowed me to see candlesticks and shadows in action!.
Best, Antonio
What do they mean to the market? They show what is the difference between highest and lowest prices paid during the period of time. They can mean everything it all depends of the situation.
hi
I will try to explain…shadows are price which market is rejecting…
ex price decreases…price goes down to 62.0040 to 62.0010…we see a bear candle…then price rejects this lowest prices & market move from this level to up…& when closing the candle…price closes above that lowest price & leaving a large tail…
it means in starting of candle ,bears are dominating & they took price to lowest levels …but after that bulls take the control …& took this price up & able to close the price up from that lowest level…
hope it helps…if not .please consider basic book by steve nson on candlestick
thanks