The long shadow from above is bearish

The Bearish Upper Shadow is a pattern observed in a candlestick chart that can be used by traders to predict a possible trend reversal from rising to declining. This pattern is formed when the price of an asset opens higher and then quickly declines, leaving a long upper shadow.

For a better understanding of the essence of the Long Shadow from above - bearish, it is important to study its structure and main characteristics. The pattern consists of a candle with a long upper shadow and a relatively small body.

In the bearish version of this pattern, the asset price opens above the previous level and then quickly declines. At the same time, the long upper shadow indicates that the bulls could not keep the price rising and the sellers seized control, pushing the price down.

A long shadow from above - bearish is a signal of trend weakness and may indicate a possible change in the direction of the trend from upward to downward. It is confirmed if the shadow is formed at the resistance level or another important technical level.

Traders use a Long shadow from above - bearish to make decisions about entering a sell position or closing an open buy position. They believe that such a pattern indicates a potential price decline and can use it in combination with other technical analysis tools to make informed decisions.

It is important to note that no pattern is an absolute guarantee of successful trading, and the use of a Long bearish shadow from above should be accompanied by additional tools and confirmation signals. Traders can use other technical indicators, moving averages or trading volumes to confirm the signal and improve its reliability.

In conclusion, a long bearish shadow from above is an important element of technical analysis for traders seeking to identify possible entry points into selling positions and predict a potential decline in the price of an asset. However, traders need to remember that successful trading requires proper risk management, the use of strategies and confirmatory indicators to achieve stable results.

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