closing sp today, page-32

White hammer in so far today, positive day on monday to confirm change to bulls

CK

The Hammer Signal

One of the most visually compelling signals is the Hammer signal. The hammer signal is easily recognized by the lower shadow ( the tail ) protruding to the downside after an extended downtrend.

Description
The Hammer is comprised of one candle. It is easily identified by the presence of a small body with a shadow at least two times greater than the body. Found at the bottom of a downtrend, this shows evidence that the bulls started to step in. The color of the small body is not important but a white candle has slightly more bullish implications than the black body. A positive day is required the following day to confirm this signal.

Criteria
1.
The lower shadow should be at least two times the length of the body.
2.
The real body is at the upper end of the trading range. The color of the body is not important although a white body should have slightly more bullish implications.
3.
There should be no upper shadow or a very small upper shadow.
4.
The following day needs to confirm the Hammer signal with a strong bullish day