Inverted Hammer

[Reaver]

	Quote:	TinGull
	YES! Call it Tins Bearish Candle Maybe they'll make a monument of sorts...out of brass, or maybe marble. All joking aside, as bf said its all about understanding the candle itself, not knowing the name.

lol works for me bro. You should set up a donation link like the indicator programmers do so we can hook you up.

[Anonymous]

	Quote:	brownsfan019
	Nice chart tin! It's technically a shooting star in case we have any noob's wondering what that was.

To play devil's advocate, one could argue that it is a Doji. The relationship (width) of the open and close versus the actual range of candle fits. There is a valid low close Doji pattern. This is a very good pattern and not what one finds in the books. Most patterns,found in books, do not work that well................I am waiting for Mark to put in his two cents here.

	Quote:	brownsfan019
	Point is that you recognized a really nice opportunity to short.

Understanding the PRICE ACTION that creates the candle line or pattern is more important than what one chooses to call the candle.

[Anna-Maria]

	Quote:	PivotProfiler
	Understanding the PRICE ACTION that creates the candle line or pattern is more important than what one chooses to call the candle.

Yes, that's a very pertinent comment, well said that man!

It's also a favorite set-up of mine when observing candle charts.

Although we tend to trade currencies almost exclusively, & their candle pattern behavior can be slightly erratic, they're still very consistant at certain junctures on the map. Especially on the 60min+ frames.

Looking forward (time permitting) to following this little corner of the forum. A nice addition to the site!

[Anna-Maria]

They can be a real benefit clipping in off the larger timeframe references.

Even better when the Fundamental chatter & scaremongering is beginning to unsettle the specs & weak holders.

Yen displayed such behaviour during late June/early July. The set-up doesn't appear as often as we'd like on the real big frames, but when it does (at sentiment extremes) it's well worth cranking the radar up & preparing the supply-demand hotspots on the lower timeframes.

Anyhow, thought I'd just sling these up for reference. 1st example is the Daily highlighting the candle, followed by the 60m behaviour off the lower top.

[Nick1984]

In my trading routing I use a 5 min candle as my "long term" trend chart and these types of candles don't seem to happen very often on the 30 min break outs plays. Have you noticed whether these set ups occur on even longer time frame like your 15 min compared to a 5 min or 233t time frame?

[notouch]

Candlestick patterns on the daily charts are usually good for a swing trade. I think generally the longer the time frame the more reliable the candlestick. You have to research which candlesticks give the best signal in your chosen market. In forex, for example, the 4 hour candlesticks give great singals but I haven't found any use for them in stock index futures.

[TinGull]

the 5min has given some great opportunities as far as the 30min range breakout failure that I play all the time. I'd say about 60% of the time I see that sort of candle. And I agree with notouch that the longer the time frame candle the more "reliable" it seems to be, but that being said there's lots of people that utilize candles on a 3min or lower time frame. I personally do not use candles on anything less than 5min. I still have a candle chart for my 1min chart, but I don't really watch the price action when I'm scalping, I tend to just watch volume and trade that.

[brownsfan019]

Pivot - what you are discussing is specific to Mark's using of candles and unless he is willing to post every detail on how they are used, I'm having trouble understanding how any reference to that is useful. As we both know, Mark uses candlesticks in his own fashion and it obviously works for him; however w/o specific resources made available to the readers here, esp newbies to candlestick analysis, no one can follow your post.

[james_gsx]

This is probably going to be a dumb post, but I am new to candlestick analysis so bear with me.

Basically in this "tin's bearish candle" price action first went up, then there was an absence of buyers and the sellers were able to take over and push price lower. Hence why you'd go short the next candle, because obviously buyers were non-existent and sellers were plentiful?

Now if it was a doji, how would you interpret it on this chart?

[TinGull]

Depends on the volume of the doji. If the volume was either excessively low or excessively high, then I'd interpret the same way. If the volume was pretty much inline with the rest of the action, then I'd be more wanting to wait for confirmation of a down move rather than acting immediately, as it *could* potentially be just a continuation doji.