| The Hammer, the Doji, the Shooting Star, the Harami, | | | | Stop" sign at a four-way intersection. It's a break in |
| the Dark Cloud Cover: all real Candlestick chart | | | | the action. |
| patterns, and each has a personality all its own. Each | | | | The Hammer emerges only at the end of a long |
| one of them warns of the possibility of a trend | | | | downtrend. Oftentimes it stands there as a lone price |
| reversal; and that's what makes Candlestick analysis | | | | bar, below price action of previous days. It will have |
| and trading so exciting. We live for reversals. | | | | a small "real body" (price range between opening and |
| In the Doji, the opening price and the closing price | | | | closing prices) at or near the top of the bar. It will |
| are the same, or nearly so. If it appears at the top | | | | have a long tail below, showing that the bears tried |
| of a long uptrend or at the bottom of a long | | | | to drive prices lower, but in the end they failed. The |
| downtrend it is a warning of a possible reversal. It is | | | | Hammer is a bullish pattern which needs no |
| as if the horse's rider had reined him short after a | | | | confirmation. Many traders will enter Long positions at |
| hard run, to give the horse a chance to catch its | | | | the end of a trading day if it appears that a Hammer |
| breath and also to take a look around at the | | | | will be the ending formation of the day. |
| surroundings. Or you might consider it to be a "Full | | | | |