The session heights are shown by the shadow on the top whether the one on the bottom describes the lows of the session. In case the trading was held not far from its open and close prices, the shadows are short. Long shadows say that trading was held in high range referring the session’s open and close price. In case the shadow on the top is long and the one on the bottom is short then we are supposed to think that the buying pressure is strong and they managed to raise the prices, but the sellers later made the prices go down to the low closing price, but its movement has formed a long upper shadow. The opposite situation (with long shadows on the bottom and short ones on the top) explains that the sellers managed to drive prices down while dominating the market, but the buyers forced the prices up back closer to the end of the session that has left a long shadow on the bottom of a candlestick.
Another situation worth describing is called spinning tops and occurs when the candlestick has long both upper and lower shadows along with the short body of the candlestick. While one long shadow is a sign of the reversal, the situation when both shadows are long indicates participants’ hesitation. Small body size, despite its color, describes that the price has moved slightly from the open price to the close one. Long shadows show an extreme activity of both buyers and sellers through the session. Prices fluctuation has been considerable within the period despite open and close are not far from each other.
A spinning top following the long uptrend (represented by a long white candlestick) may be the sign of the bulls’ weakness and possible inversion or interruption of the trend. In the opposite case a spinning top appearing after a long black candlestick, or decline, may show the bears’ weakness and forecast possible trend inversion or interruption as well.