Upper and Lower Shadow Candlestick

Upper and lower shadow of a candlestick also provide information that quite important about the body of a candlestick. If the body of candlestick reflects the balance position, the upper and lower shadow provide information about the action of attraction between the seller and the buyer that occurred during the period of candlestick.

The candlestick with short shadow indicates that most transactions are done at a price close to the opening and closing price.
The candlestick with long upper shadow and short lower shadow indicates that initially the action of buying dominated the transaction and bring price increasing, but then the action of selling dominate the trading so that push up the price back toward the open position.

Upper and Lower Shadow Candlestick

On the contrary, candlestick with long lower shadow and short upper shadow indicates that the action of selling at first dominate the transactions so that push the price much below the opening price, but then buying action take control of the market and back to raise the price up to stop and closed at slightly above or below of the closing price.