How to analyze candle shadows?

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Candle shadows in technical analysis are important indicators that help traders make informed decisions. Shadows are lines that show price fluctuations over a certain period. The upper shadow represents the maximum price, while the lower shadow shows the minimum. Long shadows may indicate a strong struggle between buyers and sellers. Short shadows point to the dominance of one of them. Analyzing candle shadows in combination with other indicators helps to accurately determine entry or exit points in the market.

This material was prepared by Khachatur Davtyan, developed and translated by artificial intelligence.