Plastic2Oil Inc (PTOI)

[Imperial Whazoo]

Whether its a hammer depends on what you use as the wave from which to call it.

I think its is a hammer. The very idea that, to be a hammer in this instance, it has to traverse all the way back down the 382, 618 & 786 Fibs is ludicrous, IMHO.

And actually, it could not be a more perfect retrace to the 382 Fib. Folks, actually bother to chart it using Fibs and you will see that, as regards the degree of pullback that is the definition of this particular wave, it pulled precicely back to the 382, retraced the body at close, and left a long tailed hammer, perfect as can be. It all depends on what is defined as the time period context of the apprpriate wave.

In point of fact, today's candle is a long tail one that pulled back in this leg all the way to the 382, almost on the button.

Here's how to stop making the mistake of missing hammers due to a mistaken definition of the wave to use.

Draw the lower end of the Fib retracement tool at the low of the day of 12/15. The other end of the tool's line should be on the HOD of yesterday.

So, the low is 1.29 & the high is 2.59, which obviously makes the wave form of the 382 chart out at 2.08.

So, the wave is 1.29 to 2.59, and the 382 is 2.08. Thats your correct contexxt for ascertaining candle formations. Which makes today's candle a hammer because...... Guess what?

LOD today in a long wicked hammer candle is 2.10 (perfect would have been 2.08, to repeat myself)

So there's your usable wave: 2.08 is the calculated 382 & it did a hammer at a 2.10 tail. Pretty obvious. The head of the hammer is, for all practical purpopses, at the perfect spot and the tail is the rejection of the LOD today. Exactly what a hammer needs to be when the correct wave context is applied.

I sat at the bid today trying to get in and I missed it by 2 cents. You really need to learn to properly draw Fibs, IMHO. Might help keep you from making this kind of mistake (missing the hammer candle today due to a mistaken definition of terms, LOL).

Here's my advise: Let the amplitude of the actual waveform define the context. Works far better than choosing an arbitrary length of time such as a day or a week as your chart confines. Let the actual chart tell you what context needs to be because its pretty obvious that anyone can always fiddle with the length of time they use and the actual candle formation that occurs can be overlooked. Using only a day, for example, is just an inapplicable constraint.

Try using timeframes than make mathematical sense. For example.... there are 390 minutes in a trading day. Have you ever bothered to wonder why it makes sense to use 20 periods in an intraday chart when 20 obviously does not factor into 390 without a remainder?

Try using 15 or 26 periods for your intraday charts rather than 20 periods.

I have a setup that uses 3, 5, 6, 10, 13, 15, 26, 30, 39, 65 & 78, for example. All factor into 390 with no remainder, BTW.

So, I watched the Fib lines today and the volumes at the various factor periods mentioned..... and the fact that it pulled back to an almost perfect long tailed hammer on the 382 line is the definition of the event.

Non-conventional, I'll grant, but it works, especially when volume is watched using time periods like those I note above. Volume events at these various periodicties are very telling intraday, especially when the Fibs are on the same chart intraday. Try it yourself.

Just a novel idea that is, in essence, thinking outside the box in order to better see patterns and how they relate to Fibs.

So thats why I say its a hammer. Use the .382, .500, .618, .786 & 1.270 Fibs as the dictators of the amplitude. Draw volume using factors of the 390 minute days. Learn to use these.

Peace.

Imperial Whazoo