Dear All, I am new to this forum and am relatovely new to candlestick charting. I have read a couple of books and listened to some of the seminars of Steve Nyson. However to come up with in depth underdtanding about these charting patters, I need to practie and shares and discuss with others.
I will present a chart daily and hope some one would explain how market is moving.
Question:
All of following charts are to view the impacr of hammer which is a trend rerversal signal.
In the first 2 charts below, there was a clear reversal and it lasted for days, what candlestick patterns is this as my software was not able to point any known candlestick patters,(it does so usually as seen in other examplets)
In the next 2 examples, the software did highlight the HAMMER patternm but the pecuiar things noticed is that the Day next to the hammers is alwars bearish and the day after it is the uptrend (as was suggested by the hammer 2 dayss ago) started. What could be the explanation.
But why this below last chart which shows hammer did not show reversal next day or even day after bt actually after5 days…
Conclusion:
If I get a blue color HAmmer, is it false?
Moreover if I get a red color Hammer, i wait one day and the day after to seeif its reversal, then enter market?
The first two charts are clearly bullish (at the reversal), what pattern?
