Long Upper Shadow is bullish 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 open will be close to day's low. The long shadow implies that during the trading window stock traded at higher price and closed near the day's open. The stock opened lower near the day's low and went on to make highs and not able to sustain the gain.
The long upper shadow will be more powerful when it occurs near the stocks All time high or 52 weeks high. 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 short or exists the position by keeping the shadow high as stop loss.
The long upper shadow will be more powerful when it occurs near the stocks All time high or 52 weeks high. 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 short or exists the position by keeping the shadow high as stop loss.