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Are Buyers or Sellers Winning? |
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Let's look at how Japanese candlesticks can help us clearly and easily see if the buyers are winning or if the sellers have the upper hand. As you study these examples, try to see how the shape of just one candlestick can give you a concise understanding of market psychology. |
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On this day, the close is very near the high, showing no real selling pressure at the end of the day. The price dropped after the open and was driven up quite sharply by aggressive buyers to close near the high for the day. Can you see that the buyers are dominating here? |
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Figure 12.8
Buyers in Control Chart |
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Another day started badly with a precipitous drop in price after the open. However, the buyers have come in and driven the price well up, off of the low for the day. Can you see the buyers dominating? |
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On this day, the close is very near the low, showing no real buying pressure at the end of the day. The price rose after the open and was driven down quite sharply by aggressive sellers to close near the low for the day. Can you see the difference when sellers control? |
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