Often called a “flush”, it is either a long lower shadow or a long upper shadow on the candlestick. A flush is a capitulation move by either bulls or bears who finally are squeezed out of a stock or market. Their panic selling (or panic short cover buying) causes the daily range on the stock to explode. The stock gets too cheap (or too expensive if short selling) and within minutes, bargain hunters have stepped in to buy the bottom (or sell the top) in anticipation for the next swing move up or down. The volume should drop off before the long lower shadow (or long upper shadow) chart pattern appears.

A long lower shadow candlestick pattern is bullish. A long upper shadow candlestick pattern is bearish.

long-shadows

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