Candles and candles only

Quote from stocktrader:

What do you think of the hammer on DIS on 06/26/03. I don't know if you have read A. Farley's book but he likes to see cross verification on points of support or resistance. I can see several points appearing on the 26th, here they are.

1. You can draw a trend line starting from 03/12/03, and connect it with the low on 05/21/03 and again with the low on 06/26/03.

2. The $19 area acted as resistance on several occasions in April and May, and so may act as support now.

3. The 50 day SMA is currently acting as support for this stock.

4. If you put a Fib box between the low on 05/21 and the high on 06/06, then the 62% retracement line is also around the $19 area.
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I like everything you said. The The former point of resisstance has also become support. The only thing I do not like is the double top on 6/6 and 6/17. You would think that the way the mkt was moving as a whole a new higher high would have been made.
 
IGT close 101.53 high 101.56
MDR close 6.24 high 6.25
RHI close 18.58 high 18.64

As expected not much going on in the world of hammers today. But with the Spoos trading back above that up-trendline that was broken with conviction on Friday we may have a trend day???

I do not know anything...react, do not anticipate!
 

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Nice thread, Indahook!

I started with candles and now use both candles and bars (candles don't matter much for scalping).

But I love candlestick science and particularly hammers & hanging men... They're very effective reversal patterns.

How's things man?

~Scientist
 
Quote from Scientist:

Nice thread, Indahook!

I started with candles and now use both candles and bars (candles don't matter much for scalping).

But I love candlestick science and particularly hammers & hanging men... They're very effective reversal patterns.

How's things man?

~Scientist
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Thing are OK, Killed it the last month just like everybody else....been hanging around flat for a week. How about yourself?

Candles are a fantastic reversal patterns. As you can see that is the primary reason for this thread. Buying on dips provides a powerful risk/reward ratio with obvious downside.
 
I believe this one may be one to watch for possible nice hammer to form soon. Going to add to my watchlist.

Good trading to you!
 
AAP close 60.17 high 60.24
CMS close 8.1 high 8.13
CYMI close 32.01 high 32.09
LRY close 34.5 high 34.57
LU close 2.03 high 2.03
MEDI close 36.37 high 36.48
N close 21.14 high 21.16
SPX close 44.06 high 44.10
TOY close 12.12 high 12.15

As far as continuation patterns go TOY looks the best. Note the volume as the dip began.


Put in your stops and let the MKT come to you......
 

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Quote from swimmus:

I believe this one may be one to watch for possible nice hammer to form soon. Going to add to my watchlist.

Good trading to you!
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I have added it to my list, although it IMO, it looks week right now. the chart almost looks like a psychotic head and shoulders.
 

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You are right about HOV. I am trying to incorporate hammers into my trading- I use supports as entries on bounces and hammers appear to give me another tool to work with. Will need to observe more to understand all the set-ups.

Look forward to learning more!
 
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