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This pattern consists of a small body with a long tail or shadow below the body but no or little shadow above the body.
The long tail shows a very substantial low, which indicates that the bears are taking control(arguable). This pattern usually occurs at the top of an uptrend and could signal a reversal in the trend.
It shows that the market sentiment has change as there is more selling going on. To confirm this bearish pattern further you would need the next day also to finish on a low.
Please click on picture above to get a larger picture
Most candlestick patterns should appear close to previous resistance or support levels depending on what type it is. You should only trade a candlestick pattern if it's near these levels.
Don't trade using these patterns if it's not at the top or bottom of a trend. These patterns appear a great deal so you have to make certain you only trade at the right level.
This is very important as you will end up over trading them and you will end up losing more money than you imagined.
