If you flip the Hammer candlestick on its head, the result becomes the (aptly named) Inverted Hammer candlestick pattern. Like the Hammer, the Inverted Hammer occurs after a downtrend, and it also has one long shadow and one nonexistent (or very short) shadow. Plus, they’re both bullish reversal patterns formed with just one candle! The key to identifying a Hammer versus an Inverted Hammer is the location of the long shadow. A Hammer’s long shadow extends from the bottom of the body, while an Inverted Hammer’s long shadow projects from the top. To learn a little more about this common reversal pattern, please scroll down.
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Today’s Swing Trade Ideas
AREX/Long (Energy Sector) AREX close Friday in our Rounded Bottom Breakout Pattern along with a J-Hook pattern setting up. Over the past couple of weeks price is formed what appears to be a bottom with a rally from the lows to the 50 day simple moving average pulling back to the 20 day simple moving average closing over the 50 simple moving average Friday. We’ll start with a 15% target and see what happens.
My entry plan idea: Below $13.25 And above $11.50
My stop plan idea: A close below the T-Line for now
Good Morning,
SPY: Our T-Line trend line continues to stay bullish as price climbs higher. Friday’s high came right to our trend line, then ended up closing down for the day. Friday’s Continue Reading
Just because a signal is composed of only one candlestick, that doesn’t mean it can’t pack a big punch. Take the Hammer candlestick pattern. Formed of a small body and a long tail, the Hammer sends a strong message nevertheless. This bullish reversal pattern indicates that after a downtrend, the bears drove down the price until the bulls gained control. If it can be confirmed, it signifies that an uptrend is on the way. Let’s dig in a little further to help you better understand and identify this common trading signal . . .
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Today’s Swing Trade Ideas
TZA/Long (Small-Cap Bear 3X ETF) TZA is back on the featured list because it’s off its lows closing above the t-line and a swing low buy signal along with a candlestick continuation pattern.
My entry plan idea: Above the t-line, careful not to Chase
My stop plan idea: A close below the T-Line for now
Good Morning,
SPY: We’ve sure seen a lot of Doji closes in the spy over the past couple of weeks so yesterday’s Doji close should not have been a surprise and the buyers have continued to keep price leading the t-line in Continue Reading
