Something happened, and the body hides it
Rahul is reading the body: first bid ₹30, last bid ₹30.20, twenty paise apart. On that alone the day looks like nothing at all.
The other two numbers say otherwise. The lowest bid of the day was ₹27.60 — the price went ₹2.40 below where it started and came all the way back. That journey is drawn as the long shadow beneath a small body, and it is the entire content of the board.
This is the second region of the slider. A rejection candle is a long shadow one way with the close finishing at the other end of the range: prices were visited and not kept.
One shape, two directions
Lakshmi's two boards. Tap each: the long shadow swaps ends, and so does everything else.
Both boards have a body of 7.1% of the range and a shadow of 85.7%. They are the same geometry, pointing opposite ways.
Four famous names, one drawing
Here is the part worth stopping on. The two boards above are four of the best-known candlestick patterns there are — and you have just learned all four as a single shape with two orientations.
A long lower shadow is called a hammer when it appears after a decline and a hanging man when it appears after a rise. A long upper shadow is an inverted hammer after a decline and a shooting star after a rise.
Four names. Two drawings. The difference between each pair is not in the four numbers at all — it is in the days that came before, which are not on the board. Chapters 04.03.02 and 04.03.03 take the naming; this lesson is only the shape.
A shape is a question. Where it sits is the answer. Four of the most quoted patterns in the subject differ only in the second half.
What "rejection" does and does not claim
The word is vivid and it is doing less work than it sounds. It records that a price was traded at and was not where the session finished. That is an observation about two of the four numbers.
It does not record who gave it back, or why, or when within the day. 04.01.01 established that the board keeps no order and no duration: the ₹27.60 could have lasted an hour or a single bid, and the recovery could have taken all morning or two minutes.
It also does not say the low will hold. A price reached and given back once has been reached and given back once. Lakshmi has seen the same board followed by every kind of next day.
- First bid ₹30, last bid ₹30.20
- body ₹0.20 — 7.1% of the range
- Lowest ₹27.60
- ₹2.40 below the first bid
- The lower shadow
- 85.7% of the range
- The upper shadow
- 7.1% of the range
- Net movement across the day
- ₹0.20
Rahul says: "So nothing happened." What is the most accurate correction?
Same shape, different placement — which name would it be given?
One region of the slider is a close at the extreme. Another is a close far from a shadow. The third is the one that looks like nothing at all — and it is not the same as nothing.