Hammers or Hanging Men?

By | July 8, 2015

Those long tailed candles that formed in yesterday’s volatile session do not look like the kind of hammer candles that result in consolidation and stable bases. They look like bearish “hanging man” candles, those with long lower shadows or tails and narrow opening and closing ranges situated at the upper end of their overal range. The longer the lower shadow the more significant the candle, but it is not by itself a reliable indication.

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