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Strategies & Market Trends : Technical Analysis - Beginners
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To: Trader X who wrote (11394)2/6/2001 7:03:35 PM
From: parker_meridian  Read Replies (1) 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 there is no confirmation then the trade was invalidated, however, once a hammer always a hammer. The candle cannot be redrawn, it is what it is. Most individual candles of course mean nothing, it is there placement in the trend or in relation to each other that is of signifigance. I would also agree that in the "close enough" concept for candles that are not quite definition perfect but exhibit the concept very closely. Look at how Nison speaks of putting candles together to form a defining one. Unfortunately in the real world one can't keep going through charts to look for the absolutely perfect examples that end up in textbooks.
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