What do you make of this chart pattern? Had a big inverted hammer over a regular hammer today on the daily going from a downtrend. I am not really sure if this is considered bullish. Kinda did the same thing in early OCT but the hammers were much smaller.
hammer, cloud, gravestone, morning star, evening star, 3 soldiers, or whatever ... looks like any moment, it might continue its downward journey.
When you zoomed in far too much, you will see the inverted hammer. zoomed out, and you will not see the inverted hammer. When will it continue its downward journey?
Relying on candlestick patterns like these on such a short time-frame is high risk. However, an inverted hammer is often called a shooting star and has a reputation as a bearish reversal signal if it occurs in an uptrend. My opinion is this title is way too optimistic as most reversals don't occur or quickly fail. These patterns might be a good signal to manage an existing long position but as a bearish entry signal they're poor.
%% Good points; all most all the trends are down on that one. And its under $5, last i looked...................................................................................................
look at the 15 minute, 30 minute or hourly for better resolution when you have questions on the daily.