When is a Hammer Not a Hammer?

I would not confuse these candles showing up as Hammers.  A Hammer is technically a bullish Hammer only after after it shows up after at least a short-term downtrend.  It is a reversal candle after all.

More often than not in my experience these candles prove to be ill-fated little ‘buy the mini dip’ exercises if they show up just after a market starts to break.  There’s the key resistance shown on the chart of QQQ.  If it gets through there I guess it will have been an okay candle, but not a reversal candle.


Subscribe to NFTRH Premium for your 25-35 page weekly report, interim updates and NFTRH+ chart and trade ideas, or the Free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Oh, and follow @BiiwiiNFTRH.

Support free quality content; please disable AdBlock, Adguard or other ad blockers on Biiwii.com (our few ads are non-intrusive) and/or donate... thank you!

Share on StockTwits

Add to SocialTrade