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Re: freeus post# 2512

Wednesday, 03/28/2001 7:28:49 AM

Wednesday, March 28, 2001 7:28:49 AM

Post# of 4110
<img src=http://www.offshore-investors.com/Candlestick13.gif>

·Hanging Man -- identical in appearance to the hammer, but appears within the context of an uptrend.

·More about reversal candles.

Candlestick Reversal Patterns

Just as many traders look to bar charts for double tops and bottoms, head-and-shoulders, and technical indicators for reversal signals, so too can candlestick formations be looked upon for the same purpose. A reversal does not always mean that the current uptrend/downtrend will reverse direction, but merely that the current direction may end. The market may then decide to drift sideways. Candlestick reversal patterns must be viewed within the context of prior activity to be effective. In fact, identical candlesticks may have different meanings depending on where they occur within the context of prior trends and formations.


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