Inverted human

In financial markets, certain configurations can signal a potential reversal after a prolonged price increase. One such configuration appears as a short period with a small main body, a long upper shadow, and a short lower shadow. It shows that buyers, who previously controlled the market, are starting to lose strength, while sellers are preparing to act, though not yet exerting full pressure. Principles of signal detection: Shape of the period: The upper shadow is significantly longer than the main body, while the lower shadow is minimal. This reflects buyer indecision and a possible beginning of a downward reversal. Previous trend: The pattern is considered only after a short- or medium-term upward trend. Analyzing previous periods confirms that the signal occurs in a rising market, not in a sideways phase. Local slope: To increase reliability, the slope of the average prices of previous periods is checked. If it is positive, the configuration indeed follows an upward movement. Data control: Periods with incorrect or zero price values are ignored to reduce the likelihood of false signals. Effectiveness confirmation: After detecting the pattern, the subsequent price movement is analyzed. If the price declines within several following periods, the signal is confirmed; otherwise, it is rejected. This configuration allows for a systematic identification of potential downward reversals by combining analysis of the candle’s structure, verification of the preceding uptrend, and evaluation of future price movement. Such an approach reduces false signals and enables the assessment of short-term trend changes based on the structural features of price behavior.