Forex Candlestick Made Easy
These are candles indicate that a trend may be ending… However, they don’t necessarily mean that the trend is going to reverse. You’ll need to have other candle confirmation signals before you can safety say that a trend reversal is likely to occur (we will look at these signals later).
Let’s move on to the next important candle characteristic: Long shadows. Long shadows represent buyer/seller rejection. A long top shadow means that the buyers in the market tried to push prices up, but the sellers were strong enough to push prices back down again. A long bottom shadow means that the sellers in the market tried to push prices down, but the buyers were strong enough to push prices back up again.