Wednesday, April 17, 2024

Shadow

What is a shadow?

When referring to Japanese candlesticks, the hatch represents the price action that occurs outside of the candlestick’s opening and closing prices .

More specifically, the thin lines above and below the body show the high/low range, called the Shadow.

Shadows

Every candlestick must have an opening price, a closing price, and a high and low price (OHLC). Once the chart is drawn, the OHLC price forms a candlestick.

The shadows are the lines above and below the body of the candlestick on a candlestick chart;

    The top of the upper shadow line of

  • is “ high ” and is called “wick “.
  • The bottom of the

  • lower shadow line is “low” , which is called the “tail.

The wick and tail are also called “shadows”.

The length of each shadow provides traders with valuable information, revealing the buying and selling pressure within the candlestick.

If you want to learn more foreign exchange trading knowledge, please click: Trading Education.

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