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.

qqq

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