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candlestick anatomy

 Just like humans, candlesticks have various body sizes.


 Candlesticks that have a long body shape indicate the volume of the power of buyers or sellers.  The longer the body, the higher the level of buying and selling pressure.  This means that the concentration of sellers and buyers is very strong and is taking over market conditions.


 While the candlestick with a short body size (short) indicates that the number of buyers or sellers is very small.  Please note that what is meant by bullish is the buyer and bearish is the seller.


 Candlesticks with long bodies and white color indicate strong buying pressure.  The longer the body shape, the greater the power of buyers and market conditions are in a bullish trend.


 While the candlestick with a long black body indicates that the selling pressure is strong.  The longer the body shape, the greater the strength of the sellers and the market conditions in a bearish trend.


 tail shadow


 The upper and lower shadows on a candlestick provide important clues about the trading session.


 Upper shadows indicate session high.


 Lower shadows indicate session lows.


 Candlesticks with short shadows indicate that the price is moving around the opening and closing prices and candlesticks with long shadows indicate that the price is moving away from the opening and closing prices.

 


 If the candlestick has a long upper shadow and a short lower shadow (left picture), it shows that at the beginning of the session it was dominated by buyer traders so that the price demand became very high, then for whatever reason the sellers came and rejected the price increase and the price was pressured down near the opening price  so that a long upper shadow is formed.


 If the candlestick has a long lower shadow and a short upper shadow (right picture), it indicates that at the beginning of the session it was dominated by selling traders so that the price was pressured below the opening price.  But then a group of buyers came and was interested in buying so the price went back up near the opening price so that a long lower shadow was formed.

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