Why were neither of these red hammers reversals? (pic)

Discussion in 'Technical Analysis' started by IronFist, Jul 17, 2007.

  1. I didn't use any real money :)

    I'm gonna go read that hammer thread cuz I'm out of work sick today.
     
    #21     Jul 17, 2007
  2. nkhoi

    nkhoi

    don't pick just any hammer laying around, select only one that riding the ma line or the pivot line.
    [​IMG]
     
    #22     Jul 17, 2007
  3. djxput

    djxput

    Just to reiterate what others have said ...

    1. In order for candles to have a meaning they have to look like candles; so the chart needs to have all sorts of looking candles and if your time period is too low then you will just have noise. Hence the chart you posted.

    2. As Niba(I forgot to copy paste your name)(the candle guy :) said you need confirmation with a hammer. A hammer or a reverse hammer is one of the best candles IMO. But it cant be looked at alone; meaning you could still trend down so one needs to take other factors in mind ie the volume - confirmation etc ...
     
    #23     Jul 17, 2007
  4. The MARKET is not obliged to follow,conform or accept your analysis of it. Different market particpants will view identical data in an array of formations and with equally fascinating formulae,analytics, display formats and mysticism. Whilst candlesticks, may provide you with worthwhile trading opportunities, they are by no means definitive, as with everything else in trading, especially on an intraday level. Trading is not about being right all the time(or even half the time), as traders whether we like it or not, there is always someone out there with deeper pockets,more powerful computers, more elaborate set-ups, than ourselves so to delude oneself into supremacy of own analysis by saying WHY, will hinder progress. Personally l am happy with 50/50 up or down, but on favourable risk/reward. I suspect your knowledge of candlesticks may require further input. Remember its only a way of displaying market price data,direction and volatility. Same goes for techniques like Kagi, Renko, Market Profile, Point&Figure or as Bollinger Bars.........



     
    #24     Jul 17, 2007
  5. #25     Jul 17, 2007
  6. #26     Jul 17, 2007
  7. gnome

    gnome

    Yeah... like YOU'VE got some of those... LOL!
     
    #27     Jul 17, 2007
  8. Out of curiosity, what makes you think he doesn't have a trading plan for particular candlestick patterns. :confused:

    Mark
    (a.k.a. NihabaAshi) Japanese Candlestick term
     
    #28     Jul 17, 2007
  9. I use candlesticks daily in my trading gnome. Not sure what you are trying to say here. Please elaborate.
     
    #29     Jul 17, 2007
  10. gnome

    gnome

    Nothing... just goofin' on you :D
     
    #30     Jul 17, 2007