As we discussed in our previous blog post about Long Lower Shadow candlesticks, a Japanese candlestick’s lower wick (also called its shadow or tail) plays an important role in conveying the price movement of the interval. It shows the interval’s lowest price, while the bottom of the candle shows the opening price (in a bullish candle) or closing price (in a bearish candle). So what happens if the lower wick is shaved off? This means that the interval’s opening/closing price (depending on the candle’s bullish/bearish sentiment) is the same as the lowest price. In other words, you have a Shaved Bottom candlestick on your hands.
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