Umbrella and Inverted Umbrella Candlesticks
Both umbrella and inverted umbrella are candlesticks indicating high decision in the market; and are often interpreted as reversal patterns. Both are single candlestick patterns having a long shadow. Umbrella candlestick is a doji having a long lower shadow (thus resembles an umbrella) and inverted umbrella candlestick is a doji having a long upper shadow.

Requirements of umbrella and inverted umbrella candlestick patterns:
Both umbrella and inverted umbrella are considered bullish reversal patterns when they are formed at the end of a significant downtrend or after a very long bearish candlestick. Both are considered bearish reversal patterns when formed at the end of a significant uptrend or after a very long bullish candlestick. They are also important reversal indicators when formed in a support or resistance level. With both umbrella and inverted umbrella, traders should always look for confirmation of trend change.
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Requirements of umbrella and inverted umbrella candlestick patterns:
- The real body of the candlestick should be very small, preferably just a horizontal line.
- For umbrella formation, there should be a very long lower shadow and no upper shadow.
- For inverted umbrella formation, there should be a very long upper shadow and no lower shadow.
Both umbrella and inverted umbrella are considered bullish reversal patterns when they are formed at the end of a significant downtrend or after a very long bearish candlestick. Both are considered bearish reversal patterns when formed at the end of a significant uptrend or after a very long bullish candlestick. They are also important reversal indicators when formed in a support or resistance level. With both umbrella and inverted umbrella, traders should always look for confirmation of trend change.
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Online Futures Trading, Online Forex Trading
Worldwide Brokerage Service, Day Trading Brokerage













