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The candle's tail and shadow are crucial in trading
The indications of the candle's tail and shadow are among the essential tools in technical analysis of financial markets. Candle tails indicate price gaps over a certain period, representing points where there is a clear selling or buying pressure. When a candle has a long tail, it indicates strong price volatility, reflecting uncertainty among investors.
The candle's shadow, whether upper or lower, reflects the highs and lows that the market experienced during the specified period. When the upper shadow is long, it indicates that sellers lost control in the end,
Based on these indications, traders can make informed decisions about entering or exiting the market, contributing to more effective risk management