Hammer vs Trend Candle with same range and color at bottom of strong down trend

#1
Good after noon all members,
last day I was reading about hammer. At a point I got confused, suppose at bottom of a strong down trend instead of a hammer (Candle A) there is a bullish candle( B) of same range as of hammer. Candlestick B has body 40-50% of its range. now my bias is towards candle B as better reversal signal than A(Hammer). Can B be considered better signal than A ?
 

primitivetrader

Well-Known Member
#2
both A and B are good signals as well as bad signals. just because there is some reversal candle pattern does not mean PA will reverse or the trend will reverse. you have to see the context/market structure in which these candle patterns have happened.
 
#3
Thnx for reply Romeo...
Suppose this is the last candle of downtrend and is not forming any double candlestick pattern. In fact the body of A or B are not overlapping with preceding candle. And the bottoms of A or B are the lowest point of the downfall. And the candle after A or B has not formed yet. I hope market context is clear.
 

primitivetrader

Well-Known Member
#4
Thnx for reply Romeo...
Suppose this is the last candle of downtrend and is not forming any double candlestick pattern. In fact the body of A or B are not overlapping with preceding candle. And the bottoms of A or B are the lowest point of the downfall. And the candle after A or B has not formed yet. I hope market context is clear.
this is what you want to be in the market context. but this is not the market context what the chart may be showing. show what you are saying on chart. else its just a bias
 

Pradeep Narayan

Well-Known Member
#5
@tanu.amit
When you say "the last candle in a downtrend"; it is apparent that there are more candles that have formed and you have a reversal in place. If you don't intend to mean "the last candle"; then there is no way to know if you have an end of trend - in that case any fancy candle-stick pattern will only play mind-games with you!
SBIN Sample.png

The blue arrow could have depicted a "Last Candle" for some! That is not the case as you can see.
 

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