Is this a reliable hammer candlestick?

Discussion in 'Technical Analysis' started by Stocker, Feb 25, 2025.

  1. PPC

    PPC


    I was referring to @maxinger chart. He posted chart of "Tractor Supply Company" (TSCO) while @Stocker posted a chart of "TESCO" (TSCO.L) that trades on FTSE. I have to admit that I also first looked at TESCO myself :)

    I fully agree with everything that @maxinger wrote, and I share Maxinger’s view that "Tractor Supply Company" (TSCO) is in a range, etc.

    Regarding your view on the candle being a hammer (providing we’re discussing the same bar), for my personal taste, the Close on that bar didn’t indicate enough buying pressure. It closed at 66% of its range, something that would be OK on a narrow range bar (with high volume) to indicated squatting.

    On a candlestick chart the lower wick looks long, but on plain HLC chart the Close doesn’t look that convincing to me.

    Having said that, "Tractor Supply Company" has high RS vs the SPX and is holding up well.

    upload_2025-2-26_13-40-8.png
     
    #21     Feb 26, 2025
    deaddog likes this.
  2. SunTrader

    SunTrader

    Putting symbol in brackets, as in how we in the USA do it (tsco.L) might have been better, but the approx. price 375.00 gave it away to me.
     
    #22     Feb 26, 2025
  3. Stocker

    Stocker

    Hi,

    Thanks for your reply. Ive attatched the chart. (Its tsco.L)

    Kind regards

    Stocker

     
    #23     Mar 1, 2025
  4. Stocker

    Stocker

    Thanks,

    Bad_Badness!

    Stocker



     
    #24     Mar 1, 2025
  5. Stocker

    Stocker

    Thanks, good to know. :)

    Stocker
     
    #25     Mar 1, 2025
  6. Stocker

    Stocker

    Thank you, everyone for your help! :)

    All the best

    Stocker
     
    #26     Mar 1, 2025
  7. Stocker

    Stocker

    Thank you!

    Stocker
     
    #27     Mar 1, 2025
  8. Stocker

    Stocker

    The second from the current days one
     
    #28     Mar 1, 2025
  9. TheDawn

    TheDawn

    Personally, I wouldn't think that's a hammer pattern at all. Hammer usually should have a very long wick below the candle to show a huge sell-off being reversed by a large effort which would display a candlestick pattern that looks like a hammer indicating a possible reversal of trend. In this case, the wick below the candle is not long enough so the reversal effort was not very large and prominent i.e. an absolute low has not been tested yet. And the hammer by itself is not a strong indication of a bullish trend. It needs to be confirmed by a subsequent candle which has to close way above the hammer at least more than half-way into the candle before the hammer and that is usually a stronger indication of a possible beginning of a bullish trend.

    Then again everything is perfect from hindsight. Candlestick patterns are accurate 30% of the time I was told.
     
    #29     Mar 2, 2025
    HawaiianIceberg likes this.
  10. deaddog

    deaddog

    How about BTC? would you call Feb 28 a hammer?
     
    #30     Mar 2, 2025