candle stick clarification | Bitcointalksearch.org

asonganyi

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Quote from: figmentofmyass on August 20, 2017, 05:35:02 PM

Quote from: asonganyi on August 19, 2017, 06:54:16 PM

while for red candles i know price opens above and closes below. so shadow should only occur below because that's were price is affected when people start buying and if people start selling again within the candle life time, then the lower shadow covers up again. i don't see how upper shadows are being formed in red candles here.

thanks in advanced..

the shadows (wicks) can occur in both directions, because they are based on the highs and lows, not the opens and closes of the candle. so, here is an example:

open: 100
high: 150
low: 50
close: 100

this is a doji candle. the market pushed both up and down (above and below the open and close) throughout the candle (creating wicks above and below the body of the candle). this particular market action gives the appearance of a "spinning top" which indicates market indecision. as someone else mentioned, a tug of war is happening when you see these wicks printing.

thanks very much sir @figmentofmyass this really cleared things up for
i vote this as the best answer i hope other have same questions would be clarified by this answer
thanks once more.

asonganyi

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Quote from: pawanjain on August 20, 2017, 12:39:55 AM

Assuming that the blue candle represents price going up and the red represents price going down whenever the price goes up the blue candle gets filled and becomes larger in size. At the same time if people are selling then price is going down and thus the candle's size becomes small leaving a shadow of it . The shadow represents that the asset's price has gone till that range and has fallen back to the current price of it. So if a blue candle has started by going up but goes down and then goes up again rapidly then it leaves it shadow on both the sides of it. Similarly it happens to the red candle too.

thanks very much sir! after reading your post for like 5 times i manage to get something out of it. i feel like making a new post explaining what you said in an easier way.
thanks once more

asonganyi

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Quote from: Cheburekus on August 20, 2017, 05:24:26 AM

The high is marked by the top of the upper shadow and the low by the bottom of the lower shadow. If the stock closes higher than its opening price, a hollow candlestick is blue with the bottom of the body representing the opening price and the top of the body representing the closing price. If the stock closes lower than its opening price, a filled candlestick is red with the top of the body representing the opening price and the bottom of the body representing the closing price. Both candlesticks have upper and lower shadow

From my question it shows i already know all these things all i want is a good explanation of how shadows are being formed in candle sticks. both the upper and lower shadow for both red and blue candle.
thanks all the same.

figmentofmyass

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Quote from: asonganyi on August 19, 2017, 06:54:16 PM

while for red candles i know price opens above and closes below. so shadow should only occur below because that's were price is affected when people start buying and if people start selling again within the candle life time, then the lower shadow covers up again. i don't see how upper shadows are being formed in red candles here.

thanks in advanced..

the shadows (wicks) can occur in both directions, because they are based on the highs and lows, not the opens and closes of the candle. so, here is an example:

open: 100
high: 150
low: 50
close: 100

this is a doji candle. the market pushed both up and down (above and below the open and close) throughout the candle (creating wicks above and below the body of the candle). this particular market action gives the appearance of a "spinning top" which indicates market indecision. as someone else mentioned, a tug of war is happening when you see these wicks printing.

asonganyi

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Merit: 105

Quote from: Mahanton on August 20, 2017, 12:58:35 AM

Quote from: asonganyi on August 19, 2017, 06:54:16 PM

i have been learning about candle sticks for long time now reading a couple of books and looking at some related videos.

but i still have a problem which i haven't been able to see the an answer. hopping to get the answer here.

my problem is with candle sticks shadows.
to my own small knowledge on candle sticks i supposed a blue candle stick should only have a upper shadow and a red candle should have only a lower shadow.
my logic;
for blue candles i know price opens below and closes above. so shadow should only occur above because that's were price is affected when people start selling and if people start buying again within the candle life time, then the upper shadow covers up again. i don't see how lower shadows are being formed in blue candles here.
while for red candles i know price opens above and closes below. so shadow should only occur below because that's were price is affected when people start buying and if people start selling again within the candle life time, then the lower shadow covers up again. i don't see how upper shadows are being formed in red candles here.

thanks in advanced..

Who said that either blue or red candle do have their own shadow located on a one place? Shadows do go on different both ways knowing that sellers and buyers do have a tug of war regarding on its price which means if theres shadow on a blue candle below which means sellers do tend to put the price down but didnt succeed because the buyers did won that candle. Its just like that,

i didn't say they have shadows located only on one side, rather i said i don't know why they do.
because according to my understanding i they shouldn't.
i didn't quite catch your explanation.
but thanks all the same

Cheburekus

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The high is marked by the top of the upper shadow and the low by the bottom of the lower shadow. If the stock closes higher than its opening price, a hollow candlestick is blue with the bottom of the body representing the opening price and the top of the body representing the closing price. If the stock closes lower than its opening price, a filled candlestick is red with the top of the body representing the opening price and the bottom of the body representing the closing price. Both candlesticks have upper and lower shadow

Mahanton

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Activity: 2730

Merit: 632

Quote from: asonganyi on August 19, 2017, 06:54:16 PM

i have been learning about candle sticks for long time now reading a couple of books and looking at some related videos.

but i still have a problem which i haven't been able to see the an answer. hopping to get the answer here.

my problem is with candle sticks shadows.
to my own small knowledge on candle sticks i supposed a blue candle stick should only have a upper shadow and a red candle should have only a lower shadow.
my logic;
for blue candles i know price opens below and closes above. so shadow should only occur above because that's were price is affected when people start selling and if people start buying again within the candle life time, then the upper shadow covers up again. i don't see how lower shadows are being formed in blue candles here.
while for red candles i know price opens above and closes below. so shadow should only occur below because that's were price is affected when people start buying and if people start selling again within the candle life time, then the lower shadow covers up again. i don't see how upper shadows are being formed in red candles here.

thanks in advanced..

Who said that either blue or red candle do have their own shadow located on a one place? Shadows do go on different both ways knowing that sellers and buyers do have a tug of war regarding on its price which means if theres shadow on a blue candle below which means sellers do tend to put the price down but didnt succeed because the buyers did won that candle. Its just like that,

pawanjain

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Activity: 2702

Merit: 716

Nothing lasts forever

Assuming that the blue candle represents price going up and the red represents price going down whenever the price goes up the blue candle gets filled and becomes larger in size. At the same time if people are selling then price is going down and thus the candle's size becomes small leaving a shadow of it . The shadow represents that the asset's price has gone till that range and has fallen back to the current price of it. So if a blue candle has started by going up but goes down and then goes up again rapidly then it leaves it shadow on both the sides of it. Similarly it happens to the red candle too.

asonganyi

full member

Activity: 484

Merit: 105

i have been learning about candle sticks for long time now reading a couple of books and looking at some related videos.

but i still have a problem which i haven't been able to see the an answer. hopping to get the answer here.

my problem is with candle sticks shadows.
to my own small knowledge on candle sticks i supposed a blue candle stick should only have a upper shadow and a red candle should have only a lower shadow.
my logic;
for blue candles i know price opens below and closes above. so shadow should only occur above because that's were price is affected when people start selling and if people start buying again within the candle life time, then the upper shadow covers up again. i don't see how lower shadows are being formed in blue candles here.
while for red candles i know price opens above and closes below. so shadow should only occur below because that's were price is affected when people start buying and if people start selling again within the candle life time, then the lower shadow covers up again. i don't see how upper shadows are being formed in red candles here.

thanks in advanced..

Topic: candle stick clarification (Read 442 times)