Core Viewpoint - The article discusses the differences between trial and distribution upper shadows in candlestick charts, emphasizing the importance of understanding these concepts for stock market analysis [1]. Group 1: Trial Upper Shadow - The trial upper shadow occurs when a stock price is suddenly raised to test market reactions before a potential upward trend [4]. - Characteristics of trial upper shadows include their appearance at relatively low price levels and low trading volume, indicating that the intention is to gauge market sentiment rather than to sell [4]. - After a trial upper shadow, the stock price is likely to recover and continue rising, as the purpose is to prepare for future price increases [4]. Group 2: Distribution Upper Shadow - The distribution upper shadow indicates that the stockholder is selling shares to realize profits after a significant price increase [7]. - This type of upper shadow typically appears at high price levels with increased trading volume, as the stockholder aims to attract buyers while selling off shares [7]. - Following the formation of a distribution upper shadow, the stock price often declines significantly due to the selling pressure exceeding buying interest [8]. Group 3: Differentiation Techniques - Investors can differentiate between trial and distribution upper shadows by analyzing the price level; a shadow at a low price suggests a trial, while one at a high price indicates distribution [10]. - Trading volume is another key indicator; low volume suggests a trial, while high volume indicates distribution [10]. - Observing subsequent price movements can also provide insights; a price increase after a trial shadow and a decline after a distribution shadow are typical patterns [10].