How to recognize it
- Appears after an advance.
- Small body near the low of the range.
- Upper shadow at least twice the length of the body; little or no lower shadow.
What it suggests
Buyers pushed price to a new high, then sellers drove it back down to close near the open. The long upper shadow marks higher prices that the market tried and rejected.
Where it matters
Carries more weight near resistance and after an extended advance. Above-average volume adds to it.
Educational content only. Candlestick patterns describe past price action. They do not predict future prices, and they are not trading signals or investment advice. Prices in the diagrams are illustrative.