August 2nd Tuesday, CME Emini - ER2 Bearish Dark Inverted Hammer Sometimes this candlestick pattern can be misinterpreted as a Dark Shooting Star. In addition, there's more diversity within the Dark Inverted Hammer and probably is the reason why it can be misinterpreted as a Dark Shooting Star. NihabaAshi
Thanks for posting that last chart...caught that one in real time today, but it's good to have you confirm I got it right.
What about this one, which showed also showed up today on the ER2? Nice volume, sitting atop support, etc. Even though the body was equal to the upper shadow, as opposed to larger, would you have considered that acceptable in real time in light of the rest of the setup?
Hi Jason, I know some that trade that particular type of price action. However, I don't think they trade it because of the Hammer-like action... I think they trade it because of the price action involving the long lower shadow. As for myself...it doesn't pass my specific rules as a Hammer pattern. NihabaAshi
Can you post the chart again and draw an arrow to what your talking about. There are different types of Hammer and I don't know which one your talking about. Thanks. NihabaAshi
No...that is not a valid trade signal. The lower shadow must be greater than the candlestick body. In your 10min chart of ES on July 6th Wednesday... The body and lower shadow are equal or 0.75 each. Once again...this is my personal criteria and such may be different from what you see used by other traders or seen in some candlestick books. NihabaAshi