FLEX NATION

[trading.jeff]

A textbook hammer formed today which signals a possible bullish reversal. It needs confirmation.

Hammer candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. The resulting candlestick looks like a square lollipop with a long stick.

http://stockcharts.com/school/doku.php?st=hammer&id=chart_school:glossary_h

A hammer forms within a short-term downtrend. It is, after all, a bullish reversal pattern. Therefore, there must be a downtrend to actually reverse...One candlestick patterns require confirmation with further upside to complete the reversal.

http://blogs.stockcharts.com/mailbag/2010/06/what-is-the-difference-between-a-hanging-man-and-a-hammer.html?st=hammer

GIHI