The candlestick trading bible

12
THE CANDLESTICK TRADING BIBLE 
You can find different colors used to differentiate between bullish 
and bearish candlesticks. 
-The filled part of the candlestick is called the real body. 
-The thin lines poking above and below the body are called shadows. 
-The top of the upper shadow is the high
-The bottom of the lower shadow is the low. 
Candlestick body sizes: 
Candlesticks have different body sizes: 
Long bodies refer to strong buying or selling pressure, if there is a 
candlestick in which the close is above the open with a long body, this 
indicates that buyers are stronger and they are taking control of the 
market during this period of time. 
Conversely, if there is a bearish candlestick in which the open is above 
the close with a long body, this means that the selling pressure 
controls the market during this chosen time frame. 
-Short and small bodies indicate a little buying or selling activity. 
 
 
 

---

13
THE CANDLESTICK TRADING BIBLE 
 
Candlestick shadows (tails) 
The upper and lower shadows give us important information about the 
trading session. 
-Upper shadows signify the session high
-Lower shadows signify the session low
Candlesticks with long shadows show that trading action occurred well 
past the open and close. 
Japanese candlesticks with short shadows indicate that most of the 
trading action was confined near the open and close. 
-If a candlestick has a longer upper shadow, and short lower shadow, 
this means that buyers flexed their muscles and bid price higher. 
But for one reason or another, sellers came in and drove price back 
down to end the session back near its open price. 
-If a Japanese candlestick has a long lower shadow and short upper 
shadow, this means that sellers flashed their washboard abs and 
forced price lower. But for one reason or another buyer came in and 
drove prices back up to end the session back near its’ open price.