STOCK GOODIES PLAYS OF THE WEEK

[StocksDiva]

FCEL Hammer / Dragonfly Doji Bullish


Pattern: Reversal
Trend: Bullish
Reliability: Low/Moderate




How to Identify it

Small real body at the upper end of the trading range
Lower shadow at least twice as long as the real body
No (or almost no) upper shadow
What it Means

There is a sharp sell off after the market opens during a downtrend. However, by the end of the trading day, the market closes at or near its high for the day. This signifies a weakening of the previous bearish sentiment, especially if the real body is white (the close is higher than the open price). Since the certainty for a Hammer indicator is low, the trend reversal can be confirmed by a higher open and an even higher close on the next trading day. If the open and the close are identical, the indicator is considered a Dragonfly Doji. The Dragonfly Doji has a higher reliability associated with it than a Hammer.

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