Long Lower Shadow is bearish trend reversal candlestick pattern. It consists of small candle body and long shadow. The candle body can be either red or green in color. The day's close will be near the day's high. The long shadow implies that during the trading window stock traded at lower price and closed near the day's high. The stock opened lower near the day's high and went on to make lows and able to overcome the loss.
The long upper shadow will be more powerful when it occurs near the stocks All time low or 52 weeks low. Long Upper Shadow in daily chart can be used for short term trading. Weekly charts can be used to commit medium to long time investments. Traders can go long or exists any short position by keeping the shadow low as stop loss.
The long upper shadow will be more powerful when it occurs near the stocks All time low or 52 weeks low. Long Upper Shadow in daily chart can be used for short term trading. Weekly charts can be used to commit medium to long time investments. Traders can go long or exists any short position by keeping the shadow low as stop loss.