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Definition

 

Neutral Inverted Umbrella is a Doji with no lower shadow. The upper shadow is relatively long. This long upper shadow represents the strength of the selling side. Neutral Inverted Umbrella can signal a trend reversal.

  • Trend: Reversal
  • Expected trend: Neutral
  • Previous trend: Neutral
  • Reliability: Moderate
  • Type: Neutral
  • Number: 1

Recognition

  • The body of the Neutral Inverted Umbrella is a horizontal line (or very small).
  • The candle has no lower shadow.
  • The upper shadow is relatively long.

Interpretation

The opening and closing prices are equal. It is also the daily minimum. The formation has a long upper shadow. May signal an ascending trend’s reversal, but a confirmation on the next day is necessary.

Important factors

Neutral Inverted Umbrella means a possible change into an ascending trend if the candle appears in a long-term inclining trend, after a black candle, and at the bottom of the channel. It can also serve as a support. It also means the possibility of an inclining trend if the candle appears in a long-term ascending trend, after a white candle, and at the top of the channel. It can also serve as a resistance. In both cases, it requires a bearish or bullish confirmation.