[james_gsx]

So something better would be to wait for confirmation, this would be a better hammer to play on if there was acting resistance around that price level. This could signal a brief consolidation, but nothing to go short on because of the strong rally. Otherwise, don't go short because the chart is overall very bullish.

[brownsfan019]

Originally Posted by james_gsx »

So something better would be to wait for confirmation, this would be a better hammer to play on if there was acting resistance around that price level. This could signal a brief consolidation, but nothing to go short on because of the strong rally. Otherwise, don't go short because the chart is overall very bullish.

Yes, I would have trouble shorting a hammer. The formation may be a hanging man, but I have a really hard time seeing that as bearish. To me, it says the bears tried to push it down and the bulls ran it right back up. I suppose you could consider shorting a hammer/hanging man right at a resistance level, but I do not play those so no idea of the reliability. You could be onto something here, but make sure you do plenty of homework.

[mister ed]

Originally Posted by brownsfan019 »

The formation may be a hanging man, but I have a really hard time seeing that as bearish. To me, it says the bears tried to push it down and the bulls ran it right back up.

I'm late to this party sorry, hope the contribution is useful.

I looked up the hanging man in Nison's first book and sure enough he says that if the hanging man occurs after a rally the move "may be ending". I must say I much prefer BF's interpretation - the bears trying to pushing it down and it bouncing right back at them.

I have attached a diagram.

[brownsfan019]

Originally Posted by mister ed »

I'm late to this party sorry, hope the contribution is useful.

I looked up the hanging man in Nison's first book and sure enough he says that if the hanging man occurs after a rally the move "may be ending". I must say I much prefer BF's interpretation - the bears trying to pushing it down and it bouncing right back at them.

I have attached a diagram.

That's what I love about candlestick analysis MisterEd - while Nison is credited with bringing it to the west, I think some things are open to interpretation of the end user.