A long upper shadow could be an indicator of a bearish trend, meaning that investors are looking to sell and take profit. The longer the upper shadow, the stronger an indicator.
A long lower shadow could be a bullish signal, indicating that investors are looking to buy, thus driving prices up. The longer the lower shadow, the more reliable the signal.
A Doji candle has no body, because the open and close prices are the same. These can typically be interpreted to mean there is indecision in the market, and are a possible indicator for an upcoming price reversal. (Why “doji”? Candlestick charts were first used by Japanese rice traders in the 18th century. “Doji” means error — presumably because it would be uncommon for prices to open and close in the exact same place. )
Umbrellas have a distinctively long bottom wick. A red umbrella is also known as a hammer. When you see a hammer it often means that the asset is receiving some serious buy action — and the price might soon be on its way up. Green umbrellas, on the other hand, have an ominous nickname: hanging men. They’re often a signal that sellers are ready to cash out — reversing the up cycle.