Hi guys!
I am still a student at the school of Pipsology. I am reading through the lessons. I am currently at Single Candlestick Pattern discussion. One of the bullets of Recognition Criteria on how to use the “Hammer” candlestick pattern says that the real body of the “hammer” [U]should be at the upper end of the training range[/U]. Can anyone explain what it means? Thanks.
The “body” of a candle is a representation of price action throughout the given timeframe, between the starting opening price and the closing print price.
The body in the above drawing is blue.
The tails (or shadows) are the wicks- rejections off price points throughout the trading period.
I think the answer to your question is just simply one of candlestick recognition, in that a legitimate Pinbar sees the body (open - close) within the upper 1/3 of the candle structure.
Does that help?
Think about what a PinBar/Hammer is telling you…Big rejection to the downside, and a close off the highs of the day.
Tons of orderflow, one side in control initially, then the other stopping a sell-off and starting a rally.
(regarding the image- ignore the numbers next to the .25, .50, .75 FIB levels- forgot to remove those oops 
).
Jake
Thanks for the help. I appreciate it.
No problem 