Mycomment regarding LRS’s hammer today:
Characteristics of a Bullish Hammer (Low Reliability) pattern :
1. Market is on a prevailing downtrend;
2. We then see a small body at the upper end of the trading range of the latest trading day ;
3. It is preferred that the lower shadow isat least twice as long as the body; and
4. There is no upper shadow (or almost no upper shadow).Brief Explanation:
The BHaP (Bullish Hammer Pattern) is a significant stick that is seen at the bottom of a trend (or during a downtrend). It is called a hammer since it is hammering out a bottom.This pattern is similar to the Bullish Dragonfly Doji Pattern (BDDP). But in the BDDP case, the opening and closing prices are the same while the BHaP has a small body at the upper end of the trading range.
Note:
1. If the hammer is distinguished by a close above the open, the situation is even better for the bulls
2. The BDDP is more bullish that the BHaP.Guata.
