📉 Understanding Candlestick Shadows & Reversals 📈

Want to decode what the market is really saying? Let’s break down a few candlestick patterns that traders often watch:

🔺 Long Upper Shadow

This could be a bearish signal. It means buyers pushed the price up, but sellers took over and forced it back down — a sign that investors might be ready to take profits. The longer the upper shadow, the stronger the bearish potential.

🔻 Long Lower Shadow

Often seen as a bullish sign. Prices dipped, but buyers stepped in and pushed them back up. A long lower shadow can indicate growing buying pressure — and potential price increases ahead.

⚖️ Doji Candles

These candles have no real body — the open and close prices are the same, reflecting market indecision. While not a direction signal on their own, Doji candles can hint at upcoming reversals, especially when they appear after a strong trend.

(Fun fact: “Doji” means “mistake” in Japanese — perhaps because exact opens and closes are rare!)

☂️ Umbrellas: Hammer vs. Hanging Man

These have a long lower wick, and the color makes a big difference:

🔨 Red Umbrella (Hammer): A bullish reversal pattern — buyers are stepping in after a sell-off.

💀 Green Umbrella (Hanging Man): Bearish warning — sellers may soon take control and reverse an uptrend.
$WCT $ETH