Long Lower Shadow Candlestick on Live Gold

What it shows

Each one gets a blue label marked LS under the candle’s low.

How Pravex works it out

1. The pattern is one candle with a range (high minus low) above zero.
2. The lower shadow, from the bottom of the body to the low, must be at least 2/3 of the range. The upper shadow may be no more than 10% of the range.
3. Nothing else is tested: no trend before it, no average body, no body colour. A hammer or a dragonfly doji usually passes this test too, so the same candle can carry two labels when both patterns are on the chart.
4. Example numbers, not a live price: high 2,015, low 2,000, open 2,011, close 2,013. The range is 15 and the lower shadow 11, which is 73% of it. The upper shadow is 2, about 13%: too long, so no label. With a high of 2,014 the upper shadow would be 1 out of 14, and the candle would pass.

Settings

Setting	Default	What changing it does
Label colour	Blue (#2196F3)	Colours the LS label that sits under the low of the candle completing the long lower shadow, with the LS letters always in white.

How traders read it

This is the candle many people call a bullish pin bar. The long wick is a price area that was tried and rejected quickly. After a fall into a level that held before, it is a sign that buyers are defending that level, and the low of the wick becomes the stop that proves the idea wrong.

Since the code checks only the proportions, the body can be any size up to a third of the range. A candle with a bigger body closed with more conviction. A bigger range than the candles around it also counts for more than a tiny one.

When it misleads

There is no trend test, so the label appears after rises too, where a long lower shadow says something else: a dip that got bought inside an uptrend. In a range these candles show up at both ends and mean little. On news spikes the wick can be one fast print, which says more about thin liquidity than about buyers. A long lower shadow label on the newest candle is provisional: that candle has not closed, and the shape may stop holding before it does.

Questions and answers

Is a long lower shadow bullish?

Pravex labels it bullish, because the low of the candle was rejected. How much it means depends on where it forms, which the pattern does not check.

Is a long lower shadow the same as a hammer?

Close, but not the same. A hammer needs a small body, a lower shadow at least twice the body and a fall before it. The long lower shadow only asks that the wick is two thirds of the range and the upper shadow 10% or less.

Is this a pin bar?

It matches what most people mean by a bullish pin bar: a long lower wick, a body near the top and a short upper wick.

Related: Long Upper Shadow - Bearish, Hammer - Bullish, Dragonfly Doji - Bullish, Tweezer Bottom - Bullish, every indicator.