There are two types of long shadow candlestick patterns: a long lower shadow (bullish), and a long upper shadow which is bearish. A long lower shadow on a candlestick is a capitulation move by bulls who finally are squeezed out of a stock. Their panic selling causes the daily range on the stock to explode. The stock gets too cheap and within minutes, bargain hunters have stepped in to buy the bottom in anticipation for the next swing move up. A long upper shadow on a candlestick suggests that the stock got too expensive, and within minutes to a few hours, profit takers and short sellers have driven the stock back down. Source: Best Chart Patterns To Trade For Eye-Popping Profits

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