Inverted Hammer

[TinGull]

Nice inverted hammer on the YM 15min this morning. Speaking of using them in context, this context was perfect and I also took this short. Knowing that the YM has a real tendency to fail a 30 minute range breakout, seeing a short signal on a candlestick at the top of a 30 min range is golden.

Here's the chart of an inverted hammer.

[brownsfan019]

Nice chart tin!

It's technically a shooting star in case we have any noob's wondering what that was. Point is that you recognized a really nice opportunity to short.

[traderlu]

Nice, Tin. Question for ya: What role did volume play in your analysis of this particular bar? That is, would it have carried the same weight in your decision to short, had it been a low(er)-volume bar?

I've been following your candlestick/volume analysis threads and trades, and it is great stuff! Very interesting. Keep up the good work,

-Luis

[walterw]

	Quote:	brownsfan019
	Nice chart tin! It's technically a shooting star in case we have any noob's wondering what that was. Point is that you recognized a really nice opportunity to short.

Shooting stars and hammers on key areas... its just about one of the best and easiest setups to trade, add some volume analisis and vuala ¡¡

Thanks Brown and Tin for your inputs lately... cheers Walter.

[TinGull]

Luis,

If volume had been lower I probably still would have taken the trade because it's my highest probability setups I've got. What I would've been more likely to do is take a smaller profit on it since the volume wouldn't have been confirming the break BACK into the range.

[TinGull]

brown, is it still technically a shooting star even when there's no gap between the candles? Or would that be some island reversal type thing if the gap was there? Im not as well versed on all the names as I probably could be I guess.

[Reaver]

Thanks, that helps me out alot. I have looked into candles and see the basics of them, but wanted more detail (from a trader's perspective, not a theorist)....which you and Brownsfan are providing a ton of! I appreciate the info ya'll.

[brownsfan019]

	Quote:	TinGull
	brown, is it still technically a shooting star even when there's no gap between the candles? Or would that be some island reversal type thing if the gap was there? Im not as well versed on all the names as I probably could be I guess.

I believe your chart is showing a shooting star in book terms. But, I personally prefer inverted hammer b/c that's what I see - an upside down hammer.

The important part is understanding why that is bearish, which you obviously get. Nate and others reading this need to understand WHY that candle is bearish and not be overly concerned about what to call it. Call it 'Tin's Bearish Candle' for all I care!

[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.

[traderlu]

Thanks, Tin, for the clarification. Very straightforward approach, I like it!