What is a key characteristic of the High Wave candle pattern?

The High Wave candle pattern is characterized by its distinctive appearance that includes both long upper and lower shadows, relative to the body of the candle, which is typically small. This formation signals indecision in the market, indicating that bulls and bears are both active, resulting in significant price movements in both directions. The presence of long shadows suggests that there was considerable volatility during the period, but the candle body remains relatively small, illustrating that the open and close prices were closely aligned. This pattern can occur in any trend and is not limited to circumstances such as uptrends or downtrends, making its identification crucial for traders looking to interpret market sentiment. The focus on the shadows, as seen in the correct choice, captures the essence of the High Wave candle and its implications for trading strategies.