Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: stan s. who wrote (24920)	8/22/1998 4:32:00 PM
From: flickerful	Respond to of 94695

stans.........by all means, intrude away. <eom>

To: stan s. who wrote (24920)	8/22/1998 6:17:00 PM
From: Monty Lenard	Read Replies (2) \| Respond to of 94695

The safer read would simply be a bullish long lower shadow. Hi Stan, let me intrude also. :-) I agree with you in that a hanging man is a hanging man when it occurs in an uptrend not in a down trend nor a down day. The candlesticks I am looking at are hammers which are a GREAT short term reversal pattern expecially when they have such a long lower shadow as we have and occur on high volume. Quote: The Hanging Man looks very similar to the Hammer, it is made of single candlestick lines, with a long lower shadows and a small body at the top, with virtually no upper shadow or a very small one. It occurs at the top of the uptrend or during an uptrend. Like the Hammer, the color of the body indicates how strong the day is: a black body is more bearish than a white body. The confirmation of a hanging man would be that the next trading day opens lower. Recognition Rules The shadow is about two to three times longer than the real body. The body has either no upper shadow or a very small one. The color of the body is not important. The real body is at the end of the trading range. Hammer is a single candlestick line, with a long lower shadow and a small body at the top. Hammer occurs during a downtrend. When the market has been in a downtrend, the market opens and sells off sharply than normal. However, the market returns to the high for the trading day, despite of the initial sell-off. The color of the body indicates how strong the day is, usually a white body is more bullish than a black body. Confirmation for next trading day will be a higher open and with a higher close. Recognition Rules The shadow is about two to three times longer than the real body. The body has no upper shadow or a very small one. The color of the body is not important. The real body is at the end of the trading range. End Quote. Thats my 2 cents worth. :-) Monty

To: stan s. who wrote (24920)	8/22/1998 9:54:00 PM
From: epicure	Read Replies (1) \| Respond to of 94695

Absolutely- I see these as very short term indicators. I even use candles on the 5 min chart and find them very predictive when used with RSI, bollingers, and momentum. I saw a tweezer bottom and bullish engulfing 5 days ago- that was bullish. Then weds we had the evening star form, though on weds it was still just a Harami because the down leg of the evening star had not been formed yet. Then we had Fridays action and one could see that a hammer was forming in the action. It doesn't mean the bear is gone, or the bull is here to stay it ONLY means that a bullish formation has been created on the chart. A truly careful person might want to wait for confirmation- but I am not that person. <g>