Candlestick shadows

Do candlestick shadows/wicks and their position relative to one another (higher/lower) offer any clue regarding direction of a breakout during a sideways move?

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Permalink Reply by Craig on July 5, 2009 at 9:48am: If the lower shadows are consistently higher, then I would bet on an upward breakout. But, I'm not sure that is enough information to trade one. Instead of looking at the shadows, I would pay more attention to the closes. If a stock is trading sideways, and I was looking to trade an upward breakout, I would wait for the highest close within the consolidation. But, then again, I don't trade breakouts.; ▶ Reply to This

Permalink Reply by George Lebecki on July 5, 2009 at 11:17am: Thanks, Craig. I am learning to, trying to daytrade GG on a 5 minute chart. Fairly often a sideways line of candles appears - from 3 to 9 candles in a row. I thought the shadow might hold a clue. I will pay attention to higher lows and the closes. When you say "I would wait for the highest close within the consolidation." Do you mean trade the breakout above the highest close within the consolidation?

--george; ▶ Reply to This

Permalink Reply by Craig on July 5, 2009 at 12:03pm: Yes, kind of like this...; ▶ Reply to This

Permalink Reply by George Lebecki on July 5, 2009 at 1:25pm: Thanks, Craig. The chart makes your answer to my question very clear.

--george; ▶ Reply to This