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Strategies & Market Trends : Technical Analysis - Beginners

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To: Michael Watkins who wrote (11392)	2/6/2001 3:50:49 PM
From: Trader X	Read Replies (5) of 12039

The true test of a candlestick is in the confirmation. If something you consider to be a hammer does not wash out that way the next day, then your assumption is incorrect. A hammer by definition is a reversal candle. If the next day shows a continuation of the trend, then it was not a hammer. If you've stretched the rules of candles to include something that does not confirm the next day, then most likely it was a wrong assumption. its a mistake to demand any candle pattern be 100% perfectly formed. It's a greater mistake to bend rules so they may fit your thesis, especially when the result is failure to confirm.

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