The use of shadow will not regardless of style candlestick. Regardless of his trademark, shadow prices will be a mirror to know the power of buyer or seller who always dominates. Without the shadow, then the strength of the trend is getting stronger and will not stop the pressure trend. To find out strength and style chandlestick shadow, you can read the description below.
Previous candlestick based tribal language consists of two words namely candle and stick. Means candle wax, while the mean stick rods. So that the meaning is kind of candlestick charts resemble candles which are used to perform technical analysis.
Steve Nison was the first to popularize the candlestick. Candlestick very representative and became very popular among forex analysts. Candlestick has information of the highest price (High), lowest price (Low), prices open (Open) and price caps (Close).
If we look, shape candlestick chart is similar to a candle. Maybe that’s why its called ‘candlestick’. Shape similar to the so-called shadow axis. Axis above named upper shadow, which ends show the highest price (high) from a specific time period. While the axis is called the lower shadow below, which shows the tip lowest price (low).
Candlestick may also provide other designation of the body (body) and tail (shadow). Use candlestick analysis always apply data Open Price (open), the supreme (high), Low (low) & Closing (close). At the top and bottom there is usually a shadow (shadow), which provides guidance price movements during the period.
If the closing price is above the opening of the candle body is usually light colored or white. If the closing price is below the opening of the candle body is usually dark colored or black. While the line is above the body that is called is called the upper shadow. At Body white, upper shadow represents the greed buyer while the dark-colored body, upper shadow indicates phobia buyers.
Line under the body is lower shadow, the shadow of lower white body representing sellers fear, while the lower shadow indicates the black body greed sellers. Several examples exist in the shadow below:
Well, enough here first our discussion of shadow. Actually there are many candlestick patterns that are not covered here, but it does not matter because we only discuss specific shadow patterns.