Question

If a Japanese candlestick has a long lower shadow and short upper shadow, this means what?

A) Buyers are in control
B) Sellers are in control
C) Market is stable
D) Market is bearish

Answer 1

A long lower shadow and short upper shadow in a Japanese candlestick indicate that sellers are in control of the market.

Step-by-step explanation:

If a Japanese candlestick has a long lower shadow and short upper shadow, it indicates that B) Sellers are in control. Japanese candlestick charts are used in technical analysis to assess market trends and identify potential reversals. A long lower shadow suggests that sellers have pushed the price lower during the trading session, indicating their dominance in the market. This can be interpreted as a bearish signal, meaning that the market is more likely to continue moving downwards.