Understanding the battle between buyers and sellers
The charts that demonstrate price movements and action are an illustration of the battle between buyers and sellers, with either parties exercising control over the markets at any point in time or being evenly matched. Here are some examples of the battle between buyers and sellers, illustrated on the charts:
Shaven candles indicate strong momentum in price movements. For example, in a bearish shaven, there is no shadow or wick as the sellers completely overwhelm the buyers and the buyers cannot move price up again.
The sellers were too strong and this will cause prices to experience a free fall until the buyers can regain their strength and push prices back up again. Price can however move in the opposite direction to the demonstration of shaven candles, as is the case during high-impact economic news releases; candlestick analysis tends to be ineffective during these releases.
Talking about long shadows, a long top shadow means that buyers in the market tried to push prices up but the sellers were strong enough to push prices down again while a long bottom shadow or wick implies that the sellers tried to push prices down but the buyers were strong enough to push prices up again. Long shadows indicate the comparative strengths between buyers and sellers.
Series of bull candles represent the price range where there are a bunch of traders looking to sell and at this point, the sellers are more overwhelming causing the price to go down or short. The reverse case is applicable with series of bear candles.