Neither buyers nor sellers were able to gain control and the result was essentially a draw.
Prices move above and below the open price during the session, but close at or very near the open price. A doji should have a very small body that appears as a thin line.ĭoji candles suggest indecision or a struggle for turf positioning between buyers and sellers. It usually implies bearishĭoji candlesticks have the same open and close price or at least their bodies are extremely short. This is a very bearish candle as it shows that sellers controlled the The open equals the high and the close equals the low. It usually becomes the first part of aīullish continuation or a bullish reversal pattern.Ī Black Marubozu contains a long black body with no shadows. This is a very bullish candle as it shows that buyers were inĬontrol the entire session. The open price equals the low price and the close price equals the high price. Japanese candlesticks with short shadows indicate that most of the trading action was confined near the open and close.Ī White Marubozu contains a long white body with no shadows.
The upper and lower shadows on Japanese candlesticks provide important clues about the trading session.Ĭandlesticks with long shadows show that trading action occurred well past the open and close. No, we’re not talking about wearing dark smokey eye shadow. In other words, the bears were grabbing theīulls by their horns and body-slamming them. This indicates that prices fell a great deal from the open and The longer the black Japanese candlestick, the further the close is below the open. Long black (filled) candlesticks show strong selling pressure. In other words, the bulls are kicking the This indicates that prices increased considerably from open to closeĪnd buyers were aggressive. The longer the white candlestick, the further the close is above the open. Long white Japanese candlesticks show strong buying pressure. In forex lingo, bulls mean buyers and bears mean sellers. Short bodies imply very little buying or selling activity. That either buyers or sellers were stronger and took control. The body is, the more intense the buying or selling pressure. Long bodies indicate strong buying or selling. And when itĬomes to forex trading, there’s nothing naughtier than checking out the Just like humans, candlesticks have different body sizes. Let’s break down the different parts of a Japanese candlestick.