The bottom

Zr1Trader · Nov 16, 2012

Bull Hammers put in on Day charts for nq, es, tf. Gold 4 hour bull hammer too.

1a2b3cppp · Nov 17, 2012

We'll know if it was a bottom in a week or two.

Daring · Nov 17, 2012

Are hammers really that important?

Half work, half don't, does not that mean we are back at the coin toss?

Bry · Nov 17, 2012

Quote from Daring:

Are hammers really that important?

Half work, half don't, does not that mean we are back at the coin toss?

Hammers are only effective with confirmations:
1. price moves above top of hammer
2. price closes above top of hammer (better than #1)

without these two confirmations a hammer is not a bullish signal

aggressive traders may enter early, but it is more risky

exception: a hammer, esp. with white body, might be taken as a buy signal if it occurs with higher than average volume (volume spike)

trefoil · Nov 17, 2012

Old Wall Street saying y'all might want to take note of: the bears have Thanksgiving, but the bulls have Christmas.

1a2b3cppp · Nov 17, 2012

Quote from Bry:

Hammers are only effective with confirmations:
1. price moves above top of hammer
2. price closes above top of hammer (better than #1)

without these two confirmations a hammer is not a bullish signal

aggressive traders may enter early, but it is more risky

exception: a hammer, esp. with white body, might be taken as a buy signal if it occurs with higher than average volume (volume spike)

Are you saying that following a hammer, on a subsequent bar if price closes above the top of the hammer that price is more likely to keep going up than to go back down?

Daring · Nov 17, 2012

Quote from Bry:

Hammers are only effective with confirmations:
1. price moves above top of hammer
2. price closes above top of hammer (better than #1)

without these two confirmations a hammer is not a bullish signal

aggressive traders may enter early, but it is more risky

exception: a hammer, esp. with white body, might be taken as a buy signal if it occurs with higher than average volume (volume spike)

Thank you for helping, appreciated.

Lucrum · Nov 17, 2012

Quote from tradingjournals:

Is my belief that QQQ 62.70 is around a bottom correct?

Why does someone who doesn't even have a brokerage account keep asking such silly questions?

Zr1Trader · Nov 17, 2012

Quote from Daring:

Are hammers really that important?

Half work, half don't, does not that mean we are back at the coin toss?

No single part of a trading plan such as Pattern signal is "that important" in the scheme of the whole plan

It has to be combined with exit , mm , and about 20 other things part of a complete trading plan.

I like to keep my eye on a few subsets of Hammers and thought I would point out the fact that some of those subsets occurred on the daily chart.

They only occur 1-3 times a year.

It would be like if I said, oh look , engulfing bar occurred today. Take it or leave it, just an observation and unless you know your own plan you wouldn't know the probabilities of X pattern signal working to your favor Y amount of time anyhow.

Bry · Nov 17, 2012

Quote from 1a2b3cppp:

Are you saying that following a hammer, on a subsequent bar if price closes above the top of the hammer that price is more likely to keep going up than to go back down?

Yes.