I[I][U]f a candlestick has a long upper shadow and short lower shadow, this means that buyers flexed their muscles and bid prices higher, but for one reason or another, sellers came in and drove prices back down to end the session back near its open price.
If a candlestick has a long lower shadow and short upper shadow, this means that sellers flashed their washboard abs and forced price lower, but for one reason or another, buyers came in and drove prices back up to end the session
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My Q is : why would seller bring the price down ( sellers want higher price right?)
and in the same way why would buyers get the price up?
Thank you and forgive me if my Q is stupid but this is the newbie island
The more sellers there are, the lower the price drops. Take EUR/USD for instance: A large number of sellers SELL euros because they believe that the USD is strengthening (i.e. the EUR/USD is moving downwards). You need to look at it from the perspective of there being 2 currencies involved.
You SELL the currency that you feel is weakening.
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This is just supply and demand. I give u example. Say u want to sell a product and nobody has this product but
You. Naturally u would want to sell at high price right?. Then more and more people have this product and they can sell a bit
Cheaper than yours so to attract your customer. Then you bring down price as well.
Thats how it goes.
Here’s your first scenario going through the motions on last weeks 30-minute dollar/cad chart.
The first circled example is a typical test of fresh ground within the overall context of a bullish thrust. No selling (shorting) going on at all, merely a halt in proceedings to check out the continued demand off the lows. Same deal with the second circled candle.
The upper two circled candles are the result of end-of-week profit taking headed into a stiff resistance zone up at the parity level. Will it continue the bullish thrust up through that resistance level?
9940 will no doubt have a say in proceedings & you’ll get to see it all play out on your candle chart as the traders test out the bullish momentum into the beginning of a new trading week.
The point being, that long upper shadow & low close candle needs to be observed & judged on the merits of the timeframe you’re viewing it from & the underlying influences directing & impacting the price action.
Do yourself a favor, don’t break your head with candlesticks, use price action, one candle will not tell yu much about market, you have to read all candles. Well, in case you are not persuated i’ll put it easy for you: candle body means where the price moved, wick or shadow means where the price bounced from. If it’s a downtrend and you have a full body bear candle, followed by a bear but with smal body and long wick it means it might change to an uptrend. That is all candlestick pattern i use. Easy huh?
Just don’t read too much into them, all it will tell you is that if it looks like it’s going up it will probably go up and VV, but that is a big part of the equation, e.g. pins really to mean that the price won’t be supported, and it’s a reading that is so easily read into too much, as well as too little!!!
Hi there, if I am reading your Q correctly; you haveto remember that there are two currencies involved, the first of the pair is what you are bidding on, so if you buy you want the value to increase to make profit. If you sell, you are in effect buying the second currency, so you need the value of the first currency to fall. I might be wrong, but that is how i visualise all of my trades, I am always buying either one or the other. I hopr this answer has thrown some light on the subject for you & good luck with all your trades…Tony.
simple calculations only when you buy and when you sell.there is a certain rules to follow on how to trade…keep going here…if i am qualified here to make a new thread.will show you my numbers.
Price action is the ability to measure market activities
I think when its coupled with good price levels S&R it will turn up profits and ease up on the psych of the game