I dont get it in hammer it says the long downward shadows indicate the sellers pushing the price lower and the buyers overcome the selling pressure pushing the closing near the open.First of all why would sellers sell for a lower price, second why would buyers buy for a higher price.Anyone who understands please explain.
Candle patterns aren’t always meaningful; as I see it works on mainly logical level of support/resistant level; you can’t use the candle patterns so blindly!
But its the buyers and sellers who set the prices. The more urgent it is for someone to sell, the lower the price he will accept. So if I’m selling something for £2.80 and I see that you are selling the same thing for £2.60, you’re going to sell a lot more than I am: so if I really want to sell today I need to drop my price below yours, say to £2.50.
Vice versa for buyers.
We’ve all been to markets in the street. Its very similar in the financial markets except its electronic.
Forget candlestick patterns, just understand the logic on how and why they are formed that way. Focus on Order Flows, Fundamental Order Flows, Supply and Demand would be sufficient.