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This pattern consists of a small candle body with long tail below and above the body, it can either be a black or white body.
Found at the top of an up trend or the end of a down trend, this pattern is a strong indicator.
It indicates that the sentiment of the market is the same and nothing has really changed, the bulls and the bears cannot seem to take control, they do try to drive the price to a high or a low but in the end they can't take possession or maintain their force.
This pattern therefore is a clear and strong indicator of indecision within the markets.
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.
