If the candle is (white or green), the price dips down quite low following the interval’s opening due to the bears’ influence. However, the bulls gain control and push the price back up again, so the interval closes above where it began.
If the candle is (black or red), the bears take the reins and force the price downward. After they’ve done all they can, they experience a pushback. The bulls take over and propel the price back up so the interval’s close is relatively far above the overall low.
The Long Lower Shadow is typically considered to be a signal, but it is quite weak in this capacity. In addition, when the market is oversold or at support, the Long Lower Shadow tends to be more significant.
Although the Long Lower Shadow doesn’t have a lot to say on its own, it should still be included in the larger conversation. When you spot it, look for surrounding patterns of which it may be a part.
I am not a financial advisor nor am I giving financial advice.
I am sharing my biased opinion based on speculation.
You should not take my opinion as financial advice.
You should always do your research before making any investment.
You should also understand the risks of investing. This is all speculative based investing.