If the candle is bullish (closing above opening) and it has equal shadows above and below, this indicates a struggle between buyers and sellers. However, if the price goes up after this candle, it gives important signals.
Possible interpretations:
1. Candle of uncertainty (e.g., 'Doji' or 'Spinning top')
Buyers and sellers actively fought, but in the end, the close is above the open.
If the next candle is confidently bullish, it confirms the continuation of the uptrend.
2. Testing support/resistance level
If such a candle appears at a strong support level, it may mean that the price tested the lows, but in the end, the buyers held it.
If the price goes up after this — it’s a bullish signal.
3. False breakout (market makers' manipulation)
If there was a strong downward impulse before this candle, such a candle can be a reversal.
How to confirm the uptrend?
The next candle should be confidently bullish.
Volumes: an increase on high volumes strengthens the signal.
Indicators (RSI, MACD): if they confirm the bullish momentum, the growth is more likely.
