The lower shadow is pretty much the opposite of the upper shadow, but you probably guessed that, right?
In this case, a long lower shadow reveals a lot of trading activity, this time by the bears.
Here we see how the sellers are optimistic enough to push prices to lower levels, but unfortunately, the buyers found the low prices attractive and entered the market with buy positions.
Eventually, the extreme prices were tested but rejected by the market.
Obviously, a small lower shadow shows little trading activity in the lower area of the candlestick. Of course, long and small shadows add to the reliability/significance of a candlestick.
And now ladies and gents, you know what the lower shadow is! Woohoo!
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