Rally To Candlestick Formation

[pipsaholic 10]

Hi,

 

Can anyone experienced in candlestick formations tell me if this hammer is stronger as previous coloured candles are all bearish leading upto the hammer as a major structure point?

 

My point is if some of the candles leading upto the hammer are green does that make the hammer at a major structure point weaker? How about the size of candles leading upto the hammer?

 

Thanks.

[wrbtrader 10]

Hi,

 

Can anyone experienced in candlestick formations tell me if this hammer is stronger as previous coloured candles are all bearish leading upto the hammer as a major structure point?

 

My point is if some of the candles leading upto the hammer are green does that make the hammer at a major structure point weaker? How about the size of candles leading upto the hammer?

 

Thanks.

 

It's not a hammer line nor a hammer pattern. In addition, Japanese Candlestick patterns were designed to work with market context. Thus, do not use them alone. Simply, your chart lacks an identity (what trading instrument is it?) to determine the market context for Japanese Candlestick analysis involving that chart.

 

Happy/Safe New Year

[pipsaholic 10]

yeah just imagine it was a major structure point as shown in the pic.

[numbertea 10]

From a candle pattern you can many times be correct to gleen off the order flow characteristics that sometimes represent the pattern. The picture shows an excellent entry point. The problem is that the reversal order flow that the pattern sometimes indicates may not be true here and you would not know that for sure with just price and volume. The good thing here is that if you are right then great entry. If you are wrong then a quick exit is obvious so depending on what the rest of your trading plan is, this is a good entry point for reversal. You can't be correct 100% of the time with it though.

 

Cheers

[Patuca 13]

I would say price went up after the last candle for at least a decent scalp

[Patuca 13]

Well?...............