So, really, trading a hammer off the open, which that isn't in my book, one must run a stop 1 or 1 ticks below the low of the hammer. It didn't break and it went up for a nice profit ?
neither do i trade 'em but if am still in from first candle i stay in..if i got scared from all those freakin' shootin' stars'n'hammers'n'dojies i wud be broke by now...by da way it ain't 1 tick, its more like 10c. edit; forgot to apologize if u lost half u eysight after lookin' at that chart...courtesy of ib.
You guys are discussing candlestick lines in this thread that aren't valid patterns. The PEIX chart had a bullish candlestick pattern on the 3min chart @ 1006am est and that pattern was the result of a key situation (talk of the town) occurring in the market. (5min chart did not have a valid pattern signal-short) I have not seen any discussions in this thread about what was occurring in the market on those particular trading days associated with the candlestick analysis involving the two charts that were posted. Therefore, so far it seems like in this thread the approach is to trade Japanese Candlestick patterns all by themselves. Just remember that if you don't understand why the pattern has formed... Best ignored the pattern and their lines. The market defines the pattern and not the other way around. Simply, if there were valid pattern signals in this thread being discussed... Not all valid pattern signals are tradable (see Trading Hammers - revisited thread). Mark (a.k.a. NihabaAshi) Japanese Candlestick term