Lower Shadow
Lower Shadow is a financial term used to describe the lower end of a candlestick on a chart. It is the difference between the low of the day and the closing price. The lower shadow is also known as the tail or wick of the candle. It is used to indicate the direction of the market and the strength of the trend. The longer the lower shadow, the more bearish the market is considered to be. Conversely, a shorter lower shadow indicates a more bullish market.
History of Lower Shadow
The concept of Lower Shadow has been around for centuries. It was first used by Japanese rice traders in the 1700s to track the price of rice. The traders used a charting technique called candlestick charting, which is still used today. The lower shadow is one of the most important elements of the candlestick chart. It is used to indicate the direction of the market and the strength of the trend.
Comparison Table
| Lower Shadow | High of the Day | Low of the Day | Closing Price |
|---|---|---|---|
| Difference between Low and Closing Price | Highest Price of the Day | Lowest Price of the Day | Price at the End of the Day |
Summary
Lower Shadow is a financial term used to describe the lower end of a candlestick on a chart. It is the difference between the low of the day and the closing price. The lower shadow is used to indicate the direction of the market and the strength of the trend. The longer the lower shadow, the more bearish the market is considered to be. For more information about this term, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Upper Shadow
- Candlestick Chart
- Bullish Market
- Bearish Market
- Open Price
- High Price
- Low Price
- Closing Price
- Trend Line
- Support Line
