Horizontal lines represent the open and the close (figure a). Once both lines are added to the chart, they are boxed. This box is called the Body. The lines extending from the body represent the extremes of the price movement during the day. These are known as the shadows. The shadow above the body is known as the upper shadow. In some Japanese analytical circles, the upper shadow is also described as the hair. The shadow below the body is known as the lower shadow or the tail. The length of the shadows has important implications to the strength of reversal
If the close is higher than the open, thebody is green and is called a Bullish Candle
(figure b).
If the close is lower than the open, the body is red and is called a Bearish Candle (figure c).
Keep in mind, this does not necessarily mean that a green body represents that the price was up for the day or that a red body represents that the price was down for the day. The body color only illustrates where the close was compared to the open. The bodies with shadows look much like candles, thus the name Candlesticks.
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#basicofcandlestick
#candle stick
Candles sticks basic
Candle sticks patterns