All language subtitles for 4. Doji Dragonfly, Gravestone, And Shadows As Technical Trading Tools

So a special shape around a dog can occur around the shadows, remember, the shadows are the wicks

of the candle, a shadow be the upper wick, the lower shadow would be below.

The real body would be the lower wick, like a typical candlestick.

As you can see, SOJI candlesticks, they have highs and lows, of course, and they have a range of

prices to stay open and closer near each other.

But when we look closer, what might be happening at the top part of the wick versus the bottom part

of the week, either one might be they'll tell us a little bit more information.

And there's certain dodgy patterns or indicators around these shadows that can give us more clues as

far as what might be happening next.

So let's take a look at some of these here.

So what shadows do is they provide special meaning when the real bodies are dodgy.

So for it to be a dodgy shadow indicator, you have to have a dodgy open and close are near each other

in terms of price or.

Exactly or pretty close on.

And if you see that the shadow is missing, you know, not much of, let's say, an upper shadow.

Let's say you have very little or no upper shadow.

That's an indication that something's happening or the shadow is extremely long.

Let's use that same upper one where it might be very tall.

Those are situations we have dogs and the different lengths of the shadows can be very impactful.

Stories telling us, you know, from patterns I've had in the past what we can expect.

So there are some common shadow patterns to watch for and they can have real interesting names.

Tube the main thing you want to watch for these patterns, because doges can be rare, but if you see

them, there might be a great opportunity.

So let's look at these common dog shadow patterns again, looking mostly at the wick and see what that

might be telling us.

So the first one here is a Dragonfly dog.

I love that named Dragonfly dodgin.

You can see the image there on the right there.

And if you look at just the image, what does it tell you?

Just look at the image for a second.

It looks like a T, I guess, but it's really telling you that the open and high and close were all

the same right ideology.

By its nature, the open and the close would be similar or at the same, but in this case that the actual

high was the same as well.

So not only open at the high in close of the high, the whole price range to the very high of the whole

price range was of the top.

So you'd have this long, lower shadow dodgy, right?

So the doget below it is a long, long, lower shadow and that's a dragonfly dodgy.

And really what's happening here is that, you know, the price opens and sellers are really trying

to drive the price down.

They're trying to see if somebody will sell for less and establish a new low.

Right.

They want the clothes to be below the open and try to establish a new low.

But they didn't succeed.

In fact, not only did it not succeed, it got pushed back up to the point where the open in the clothes

were dodgy and were the same and near the high.

It started at the opening of the day.

So how you interpret that and you always need to look at the bars preceding a to interpret a doch.

Again, dodgiest.

Don't tell us things just on their own.

You got to look at the bars preceding it, the candlestick preceding it.

So the preceding bars were in a downtrend, were trending down then buyers are emerging and the down

trend may be maybe ending.

Think about it.

It opens lower because we're in a downtrend and they try to go lower still.

But the buyers say, oh, how we think we're ready to buy.

We think this is too low.

And then they come in, they drive that price back up, drive up that from that lower shadow because

we see the range and the low and they drive that price back up on a dry downtrend.

Buyers are emerging showing a transition.

Remember, Doges are transition indicators.

If the preceding buyers were in an uptrend, then sellers are emerging, you know, preventing the buyers

from moving to a higher price and the uptrend might be ending.

So you think about that.

We open at this price, buyers might might be wanting let's go higher.

But oh my gosh, there's all these sellers just drove everything low and the buyers just couldn't even

move it above the opening price.

They got kind of stuck there.

So it's another way to look at it.

But in that shows the uptrend may be ending.

So, again, the dodgy itself, you can't look at that and say, oh, we're going to start buying,

oh, we're going to start selling.

You have to look at the preceding bars and whether that downtrend or an uptrend.

And you'll see that with some of these other examples as well.

So that's a dragonfly dodgin.

Let's look at a gravestone, Joce.

So if you look at that one, it's kind of the exact opposite, right?

You have a long upper shadow.

You have a long upper wick, the open, the close where the same or approximately the same.

Again, that's the whole concept of a dog.

If you had a thick real body, then it's not a dodgy.

But this one is because the open and close are the same.

No real bottom shadow.

It's all upper shadow.

And so what's happening here is buyers are trying to drive the price up and establish a new high.

But they didn't succeed, opened in price, tried to drive it up, came all the way down.

The closing price was near the opening.

So, again, we're going to look at the preceding bars and the preceding bars were an uptrend.

Then what's happening?

Sellers are emerging and the uptrend might be ending.

So we're trying to go up.

Buyers are saying, let's push this baby up higher even still.

But sellers are saying, no, we're going to bring this down at least to the our opening here and we're

going to bring it all the way down for the close back to opening.

And so that uptrend might be ready to transition or end.

Same thing with preceding a downtrend just.

The opposite buyers are emerging, preventing sellers from moving the price lower and the downtrend

may be ending.

So we open at the on the left hand side, they might be thinking about trying to go lower, but buyers

are like, nope, what's good?

This high range up here, let's try to end on a high note, doesn't end up that way.

Ends up coming back down to the close, being the same as the open.

So that's dodgy.

But it's an indicator that things are happening and a transition might be on its way.

So be watching for that if you are in a downtrend.

Another way you can look at Doges two is this if they're missing shadows.

So sometimes the shadow can be very long, a very, very long or short Wick's.

But what they're really kind of or long in one direction or another.

But what if they're missing a shadow?

You know, like let's say you have what's called a shavon top.

You can see in these examples here for Shavon Top, where there's not much there's really nothing going

on as far as higher highs.

There's no real high other than the opening of it or the closing, depending on how you look at it.

But but they have this long shadow on the bottom.

So these are two different examples.

So if the opening is high, is that the high end?

It's all downhill from there.

So in the red one, we know that opened at the top of the rectangle, top of the candle, and then went

down and went down.

Way down.

As far as how long can that long wick at the bottom.

But there's nothing really at the top, you know, that's a shavon top and a down hill or downtrend.

And you think about it, it's kind of a double barasch, right?

Double kind of double bad for prices.

Right.

You know, not only is the day down, but there's no buying really occurring.

Even after the open, everybody was kind of selling and kept driving the price down.

We know from that it's a red candle that the opening was higher than the closing because it's a red

candle body.

And we know because there's no wick at the top that there really was nobody trying to drive those higher

up now as opposed to the green one.

It's the same thing.

It has a shaved top, no higher highs, but the closes at the high again are opening.

It's going to be at the bottom of a green candle at the bottom of the rectangle and it's going to go

up from there.

Almost gone down for a while.

Sure, there's a low range, but it closes that near the high and there was no higher highs in terms

of range.

But it's still it's a real positive sign that that the close went really kind of pretty much up from

there.

So that's a shavon top.

And you got to look at that one individual to see, you know, what's the trend doing?

And you know, what's really also especially what was the opening and what was the closing, whether

it's a bull or a bear type of thing, are prices rising or falling?

Prices are falling.

Bull prices are rising, the opposite of that shavon bottom.

Right.

So we can look at our candles.

Not much.

We're coming out of the back bottom there at all.

It's all kind of a mean body and then, of course, a wick at the top.

So if we look at the green one, they're a bullish shavon bottom.

We can see that opened at the low, the low of the day.

There was not anything lower going than that.

There's no quick below that.

And that the buyers really dominated to drive that price Hupp up.

So it was really a bullish thing.

They drove it up even higher if you went all the way up the wick.

But it's still settled up higher than the opening and but there's no bottom in it.

So it's a very bullish sign by itself.

The opposite, of course, would be if it closed at the low, then sellers are dominated.

It's red candle.

It's the top of the rectangle.

Show us their opening bottom with your clothes on a rectangle opposite of a green green one or of our

real body.

And they would show that they closed lower so the sellers dominated.

So even though it opened and tried to go up higher up, that that wick, it really ended up down.

As far as in the closing, prices were right at the bottom.

It wasn't like it went lower and then went back up a little bit with a wick extending out the bottom.

It was like, no, we're going to get this as far as we can.

We're going to close there at the end of the day.

And that's what happened there.

As far as with a shavon bottom.

Now, these missing shadows, Chavan bombs are tops.

If these if they're really long, that can mean something to as far as the wick or that range is very

long.

So the shadow is as long or longer than the real body.

Right.

So that's the key you're looking for.

Are these really long?

Wick's around them and they've got to be longer than the actual real body itself to be a true, you

know, long type missing shadow.

Again, you may not may or not follow through into the next day.

So that can be a little tricky.

It's not a guarantee, but it's certainly a definitely an indicator.

And again, you want to judge relative to the preceding bars, but you can kind of see here what that

might look like as far as far as the shavon tops or shaven bottoms and really long walks with these

really long missing shadows.

So let's look at that.

So if you have a really long, let's say, a long, upper shadow, long upper wig, so the high of the

day is well above the open and close.

Remember, it's been longer than the real body.

So the high of the day is the absolute high of the day is well above what it opened at.

And what a close set.

So the price, Sirius's uptrend.

Right.

So.

Well, we're going upwards in prices, that's a good thing going up and you see a long upper shadow

that shows the failure to close at the higher high and that actually may signal an uptrend is over.

It's like, OK, we're still a trend.

It's still a green candlestick.

We still went up.

Our opening was lower than our closing because we know of a green triangle, but we know that we tried

to drive that price up real high and even a higher high, but we didn't get there.

So it may signal when you have a shavon bottom and you have a long upper top in a uptrend, that that's

uptrend might be over.

And then really just the opposite in a downtrend.

Right.

The long upper shadow shows buyers are willing to buy at higher levels and that may signal that the

downtrend is over as well to.

So look at what's proceeding and then look at your candlestick and see what color it is as far as the

opening closing and then be watching for these long, really long missing shadows as far as going up

the top there.

Same thing with the bottom.

As far as coming out long, we're coming off the bottom.

A long, long, lower shadow shows that the low of the day, the lowest price of the days in that range

was well below the open and close.

Remember, it's a long wick you're looking for, not just at the normal week.

It's going to be longer than the real body.

So if the prices are an uptrend, we would know that because green real body, the longer the long,

lower shadow shows that traders are not willing to buy at higher levels right up to the close, you

know, they're exiting at the high and they may think new highs are not justified.

So it may signal that the uptrend is accelerating, it's not as strong or it may actually even signal

it's ending.

So you want to watch that closely.

And the same thing with prices are serious is a downtrend.

The long, lower shadow shows a failure to close at the low.

We didn't close the law otherwise it would to a narrower or maybe Shavon bottom, but it's actually

showing a Shaiman top in a very long week.

And that may signal that the downtrend is weakening, are over as well as we closed higher than those

lowest of lows that were very, very long, very low lows.

It closed up higher than that.

So it might be an indicator to watch that an uptrend might be happening.

Now, if you see something like this, would you immediately jump in and say, oh, I see that that

red candle with that long wick, I'm going to buy that the next open I'm buying right now.

You one thing with the trends, you want to make sure the trends become, you know, establish themselves

by itself.

This is not telling you.

It tells you to be watching, but you shouldn't necessarily take action on it.

You should be waiting for that uptrend to develop it.

Just be aware that a downturn might be undoing it might be going either sideways or I might even be

reversing to a full uptrend.

And to watch for that, and we'll learn later the course about how we can use confirming indicators

to confirm these types of moves.

But again, we're really looking for these long, upper and lower Wick's missing shadows, in addition,

with a missing shadow in combination that can really tell us quite a bit.