Long Upper Shadow Candlestick on Live Gold

What it shows

Each one gets a red label marked LS over the candle’s high.

How Pravex works it out

The pattern is one candle with a range (high minus low) above zero.
The upper shadow, from the top of the body to the high, must be at least 2/3 of the range. The lower shadow may be no more than 10% of the range.
Nothing else is tested: no trend, no average body, no body colour. A shooting star or a gravestone doji often passes this rule as well.
Example numbers, not a live price: high 2,030, low 2,018, open 2,019, close 2,020. The range is 12, the upper shadow 10 (83%) and the lower shadow 1 (about 8%). The candle passes.

Settings

Setting	Default	What changing it does
Label colour	Red (#F23645)	Colours the LS label that sits over the high of the candle completing the long upper shadow, with the LS letters always in white.

How traders read it

It is the candle people call a bearish pin bar. The long wick marks prices that buyers reached and could not hold. After a rise into a level that turned price before, that rejection is the bearish case, with the top of the wick as the line where it is proven wrong.

The body can be anything up to a third of the range, so look at it. A close near the low of the candle is a firmer rejection than a close in the middle. A wick much longer than those of the candles around it also counts for more.

When it misleads

There is no trend test, so the label also appears after falls and in ranges, where a long upper wick is a bounce that got sold and tells you little new. A single fast print on a news release can draw a long wick that no one traded much at. On the newest candle the long upper shadow check reruns with every price change, so a label there can come and go until the candle closes.

Questions and answers

Is a long upper shadow bearish?

Pravex labels it bearish, because the high of the candle was rejected. Its weight depends on where it forms, which the rule does not check.

How is it different from a shooting star?

A shooting star needs a small body, an upper shadow at least twice the body, a lower shadow of 10% or less and a rise before it. The long upper shadow only checks the two shadows against the range.

Is a long upper shadow a pin bar?

It matches what most people call a bearish pin bar: a long upper wick, a body near the low and a short lower wick.