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Old 03-28-2008, 04:41 AM
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Re: Hammers in Hindsight Work!

Hi James

Whatever analysis you do, most important thing is the trend and probably the most difficult thing to identify it. Is there a trend and how strong is it? Have a look on the 15min chart. Since the top at ~1360 we are in a downtrend, but with overlapping waves, which means, the trend is not very strong. In surch circumstances candles work very well as turningpoints.

Let's now look on the upmove in the middle in a five minute chart. The 'reversal candles' (inverted hammer, shooting star ...) didn't change the trend, they produced just a small retracement. As with all indicators, in different environments we have to apply them in a different way.

Helpful in determinig the trend are the wide range body candles, in this case the long green upbars.

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