I think people should also understand what Candles actually mean prior to extolling their virtues.
However, if the hammer forms in the middle of a trading range it tends to have little significance.
most analysts do not care if the small candle is red or blue, traders will actually take a blue candle to suggest a stronger bullish signal.
Taken alone it's not really a definitive signal and therefore it's a good idea to seek confirmation with some sort of an up day signal, the following day. The stronger the up day signal, the better. Volume can also be used to ascertain the probability of a turn around, in this case and increase in volume.
http://www.asx.com.au/prices/candlestick.htm
ADO Price at posting:
20.0¢ Sentiment: None Disclosure: Not Held
