Lesson #15 Learning the Sexy Bodies and Strange Shadows

Seeing the Sexy Bodies

Candlesticks, similar to humans possess distinct body sizes. Going over the candlesticks bodies is very mischievous in Forex trading. Intense buying or selling can be denoted with long bodies. The stronger the buying or selling pressure results in a longer body. Very minimal buying or selling movement can be denoted with short bodies. Buyers are called bulls and sellers a re called bears in street Forex terms.

Intense buying pressure is depicted by long white candlesticks. This is indicative that buyers were influential and prices significantly rose from open to close. The greater the distance between the close and the open results in a longer white candlestick. So it can be said that the bulls are kicking the bears’ butts’ big time.

Intense selling pressure is depicted by filled long black candlesticks. This is indicative that sellers were influential and prices significantly dropped from open to close. The greater the distance between the close and the open results in a longer black candlestick. So it can be said that the bears were slamming the bulls and grabbing their horns.

Spot the Mysterious Shadows

The crucial indications about the trading session are based on the upper and lower shadows. High session is implied by the upper shadows. Low session is implied by the lower session.

Long shadows of candlesticks are implications of a trading action that took place after the open and close. Short shadows of candlesticks are implications that most of the trading action took place nearby the open and close.

In cases when buyers warm up and bid for higher prices and at the same time sellers compel the prices to back down and end the session back close to its open price then a candlestick with a long upper shadow and short lower shadow is depicted.

In cases when sellers flaunt their washboard abs and compelled the price to drop, and at the same time buyers maneuver the prices to go up and end the session back close to its open price then a candlestick with a long lower shadow and short upper shadow is depicted.