This article has been translated from English to Gen Z Slang.
Let’s dip our toes into the anatomy of a Japanese candlestick.
Thicc Bodies
Just like humans, candle fam got them thicc or skinny bodies. And in forex, the real tea is in peeping those candlestick bods!
Long bodies show major buy or sell vibes.
The longer the body, the more intense the FOMO from buyers or sellers. Basically, peeps on one side really brought the smoke and snatched the market.
Short bodies mean there’s barely any sip sipping of the tea. In trading talk, bulls = buyers and bears = sellers.
Long white Japanese candlesticks mean there's strong buy energy.
The longer the white candlestick, the more the price popped from the open.
Buyers weren’t playing—bulls claimed victory like champs and sent bears packing!
Long black (filled) candlesticks mean there’s strong sell energy.The longer the black candlestick, the more the price nosedived from the open.
This means bears were flexing, tossing bulls around like a ragdoll.
Sneaky Shadows
Nope, not a call-out to goth eyeliner vibes.
The highs and lows on these candlesticks drop hints about the tea that was spilt during the trading sesh.
Upper shadows spill on the session peak.
Lower shadows spill on the session bottom.
Candlesticks with long shadows reveal that trading may have been all over the map after the open and close.
Short-shadowed Japanese candlesticks mean they mostly gave side-eye near the start and end.
But then, sellers pulled a fast one and dragged prices way back near the open price.
If a Japanese candlestick got a long lower shadow and short upper shadow, sellers dropped some major coolness and pushed it down low.
Yet somehow, buyers snapped back and pushed prices right up near the start.