SHIVA-The ultimate symbolism
Shiva means the form of welfare & benediction(kalyankarak).
1) Shiva Ji resides in the peak of Kailash. This signifies that wisdom always resides at the white peak i.e. top centers where as the ignorance resides in the lower centers. At the time of anger, fear, lust, sex , our mind, heart and soul comes down to the lower center of the body (Muladhar Kendra i.e. base of spine). If the mind & soul resides in top centers of the body then one do not fall prey sensual indulgence and carnal desires. The demigod of desires (Kam Dev) attacked Shiva Ji with an arrow, but with mere sight of Shiva Ji , the demigod burnt down into ashes. If you are also attacked by lust and desires, then come to the upper centers (i.e divert your mind and should towards the upper portion of the body) and then the those desires could not win.
2) The Kailash peak & Himalayan peak are white and Shiva Ji resides there. Similarly where Satvagun (moral values, ethics & good habits) resides there also resides AtamShiva (Supreme-Self).
3) Ganga springs out from the head of Lord Shiva. This means the wisdom springs out from the head of a learned & wise person. They have all those capabilities with which they resolve the critical & precarious issues very easily. 
4) Shiva Ji is adorned with the second-day moon on his head. This signifies that wise men greatly honor even the minute light and trivial qualities of others. Shiva Ji is treasure, reservoir of wisdom and that is why he does not dishonor any knowledge & wisdom instead respect it. 
5) Shiva Ji wears a garland of heads. Few scholars says that these heads are not common head instead are the heads of scholars & learned. In order to maintain the memory of those scholars who led their life with great knowledge, Shiva Ji wears the head garland. Some other philosophers says that Shiva Ji wears such garland to preach us that whether one is rich or poor, learned or uneducated, male or female but in the end of life , one has to leave this skull here (i.e physical body leaves here after death, and we are not physical body instead are pious souls).
6) Shiva Ji has applied ash upon his body. This is to remind us that whatever status, post, luxury we acquire; whatever proud we are of; all those are lost after death. The ash on Shiva’s body intimates the final stage of our body. Thus remember this holy ash and abdicate the pride, endearment, affection & attachment and come to your inner soul and attain self-realization.
7) The other ornament wore by Shiva Ji is monstrous snakes. If a snake is alone, it is being killed but when it is with Shiva Ji, it is being worshiped. Similarly if ones only engage in the worldly activities then would definitely fail, instead if charges the mind with divine consciousness and resides in supreme-self and then perform the worldly actions which in turn would become the ideal activity
8) Trident (Trishul) & Damaru ornate Shiva Ji. This implies that Shiva is not in control of the three Gunas (Sattvagun, Rajogun, Tamogun) instead keep them in his control and when become happy , he dances taking Damru in hand.
9) Some says that Siva Ji has an addiction to hemp. Actually he is addicted to “Bhuvan Bhang” i.e destroying the world. Hemp addicted people took only the word “Bhan” from “Bhuvan Bhang” and interpreted it as hemp and took this as excuse to consume hemp.
A good gardener is one who does the cleaning of the field regularly and uproots the weeds (unwanted plats). If he does not do that, then the garden would become a forest. Similarly Lord Shiva is a ideal gardener of this world who has the habit of destroying the evils around the world (Bhuvan Bhang).
10) In the residence of Shiva ji, the animals of opposite nature (i.e. who usually are enemies to each other) live together with peace; for example Lion - ox, peacock-snake-rat, all stay together with happiness. Why? This is because of the parity and equanimity of Lord Shiva. Similarly one who has equanimity (Samata) in life (i.e. behaves, reacts equally in all kinds of situations); can enjoy and live happily in all kinds of inimical ambience. 
11) A wise person becomes happy seeing a rose and thinks “how good is this flower, which is spreading its fragrance being surrounded by thorns”. But an ignorant prosecutor would say “one flower and so many thorns! Is this the life, where happiness is little but filled with sorrows”. Thus one who is intellect and knows the Shivatattva (real meaning of Shiva), who leads life with equanimity; ponders that the supreme power who has blossomed the flower, has also created the thorns. The ultimate power that has given birth to happiness has also created the sorrows. Thus one who observes happiness and sorrows equally and do not get flown away by them, will definitely achieve the self-realization i.e would get into the root of everything as Lord Shiva.
source=http://www.bsk.ashram.org/Home/ChildrenCorner/Festivals/Shivratri.aspx
तद्विद्धि प्रणिपातेन परिप्रश्नेन सेवया ।
उपदेक्ष्यन्ति ते ज्ञानं ज्ञानिनस्तत्वदर्शिनः ॥
उस ज्ञान को तू तत्वदर्शी ज्ञानियों के पास जाकर समझ, उनको भलीभाँति दण्डवत्* प्रणाम करने से, उनकी सेवा करने से और कपट छोड़कर सरलतापूर्वक प्रश्न करने से वे परमात्म तत्व को भलीभाँति जानने वाले ज्ञानी महात्मा तुझे उस तत्वज्ञान का उपदेश करेंगे. श्रीमद्*भगवद्*गीता-4.34
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