This is a Hammer.. this can be bullish or bearish depending on where it happens. After a strong uptrend, this has bearish implications and vice versa.
Understanding the psychology of market participants will explain everything.
And this is an Inverted Hammer... sometimes known as shooting star (suggesting bearishness).
Understanding the psychology of market participants will explain everything.
And this is an Inverted Hammer... sometimes known as shooting star (suggesting bearishness).
It does not matter what name you give to this candlestick formation.... just remember that this hints at a trend reversal.
Now the apparently funny thing is the SAME formation can occur anywhere but the hint is trend reversal. This means that after a strong trend if you have a hammer or inverted hammer, you should be prepared for a trend reversal. NOTE that I have not indicated if the previous trend was UP or DOWN.
CAVEAT: understand the psychology of what is happening. This is very important and will tell you when a supposedly reliable pattern will fail.
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