Investor Glossary-shadowInvestor Glossary-shadowInvestor Glossary-shadowInvestor Glossary-shadowInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Shadow

The HTML to link to this page
 

In candlestick charting, a shadow is a line on a candle that conveys visual information about the direction and intensity of trading in a particular asset. A shadow indicates the price range over which an asset traded during a specific time period, usually a day. The length of a shadow also reveals approximately when trading occurred and whether it was strong or weak. For example, a short shadow reveals trading was concentrated at the open and close, while a long shadow shows trading extended beyond the open and close. Shadow length and position together reveal even more about the quality of trading action. A long shadow above the body of a candle and a short shadow below it suggest buyers led the trading session until nearly the end, when sellers appeared to drive prices down. The reverse - a short shadow above and long shadow below - suggest sellers led the session until nearly the end, when buyers appeared to drive prices up. A long shadow both above and below a candle suggests buyers and sellers were equally active, and the market was indecisive. A short shadow above and below a candle suggest buyers and sellers were equally inactive, and the market was indecisive.



Rate this Shadow definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: Key Rate Duration, margin rate, stock split, irrevocable trust, required rate of return, 1031 exchange, debt service coverage, ex-dividend, ex-dividend date, covered put, 401a, average price per share, Zero Cost Collar, deferred tax, liquidity ratio, phantom income, reverse mortgage, current ratio, 1035 exchange, inflation, class C shares, balance sheet, per diem, diluted share, wholly-owned subsidiary, annual return, VIX, option premium, limit order, EBITDA, deferred revenue, stock market close, APR, in escrow, FICO score, command economy, implied volatility, open position, risk management, dividends payable, real GDP, 144a, FTSE, minority interest, LIBOR, cancelled check, labor relations, retained earnings, quality assurance


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use