Candlestick shadow

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The distance between the candlestick body and the maximum day price in the form of a vertical line is called the candlestick upper shadow (uwakage). The distance between the candlestick body and the minimum price is also depicted as a line and called the candlestick's lower shadow (shitakage).

The Japanese candlestick body is the difference between the opening and closing prices, and the Japanese candlestick shadows point to the price maximum or minimum in the given trading period. If the shadows are short, then the price range of a certain security will be focused near the opening and closing prices in this period. If the shadows are long, it means that trading was active in this time frame, and the prices moved away from the opening price and returned to the closing one afterwards.

If a candlestick has a long upper shadow and a short lower shadow it testifies to the fact that in this period the bulls were dominating and pushed the price to the high, and then the bears sent it to the level of the closing price.

If a candlestick has a long lower shadow and a short upper shadow, bears pushed the price down, and the bears brought it to the closing level. In both cases the candlestick colour does not matter.


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