Well, it looks quite nice, with a white hammer supported @ 0.205 closing. MACD already crossed over, with a high green volume today! This signifies some demand there, as the price didn't fall below, though there were almost 76k shares being dumped and there were just eaters. This is what we called as demand.
Looking forward to some higher prices, in the coming days, but probably there might be some pullback just then, just monitor and be cautious next week, as Tuesday would be the T+4 day.
Support @ 0.19.
As this would be a speculative stock / penny counter, for those who enter, pls do not be greedy! Watchout for exit. And pls set a stop loss point.
Note - its not a hammer, its a hanging man, if you must.
ReplyDeleteAn old article of mine may be of assistance -
http://fusiontrader.blogspot.com/2007/04/yin-yang-of-candlesticks.html
okay thanks, noted.
ReplyDeletehammer is only used when it is downtrending where else hanging man is used at top / a strong resistance level?
so, when the hanging man is there and the price will most likely fall just like what it happened already?
thank you so much for noting down my mistake! :-)
Yea, basically hanging man is the opposite of hammer, hence why I titled the article Ying and Yang of Candlestick. Back then, very flowery when blogging :P
ReplyDeleteIn any case, in candlestick study, there is another thing to consider - the strength of the signals. E.g. A mere hammer/hanging man alone is insufficient to give a high probability trade signal. They are usually considered as medium strength signal - i.e. moderate reliability only.
The price fell not because of the hanging man. In fact, it only barely makes it to the definition of 1/3 body to 2/3 shadow. Furthermore, its a white hanging man.
Price fell because the rebound ended from a steep fall. Usually after a steep fall like this, the rebound is furious. Thereafter, it resumes its downward move somewhat. Then it depends on whether it manage to consolidate or not.
Hmm, do I make sense here or it all seemed like a rambling?