Imris Inc. (IMRSQ)

[ospreyeye]

$IMRSQ Chart - BULLISH INVERTED HAMMER reversal pattern formed on Thurs. - the rules of confirmation state that the share price should cross the midpoint of the inverted hammer to confirm the pattern - the pattern has not yet been confirmed - keep an EYE on the midpoint of the wick on yesterday's inverted hammer - when the share price breaks that level it will confirm the pattern -

http://www.candlesticker.com/Pattern.aspx?lang=en&Pattern=2104

Definition

This pattern consists of a black body followed by an Inverted Hammer that is characterized by a long upper shadow and a small body. It is similar in shape to the Bearish Shooting Star but unlike the Shooting Star, the Inverted Hammer appears in a downtrend and signals a bullish reversal.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. The first day of the pattern is a black candlestick.
3. On the second day, a small body at the lower end of the trading range is observed. Color of this body is not important.
4. The upper shadow of this second candlestick should be at least twice as long as the body.
5. There is (almost) no lower shadow.

Buy/Stop Loss Levels

The confirmation level is defined as the midpoint of the upper shadow of the inverted hammer. Prices should cross above this level for confirmation.