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EYE

 
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Slim
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PostPosted: Sat Mar 26, 2005 2:31 am    Post subject: EYE Reply with quote

Here's a doji reverse hammer to watch that may have found support at its 200dma.

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Plodder
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PostPosted: Sat Mar 26, 2005 12:16 pm    Post subject: EYE Reply with quote

Hello Slim,

The occurance of this doji is simply a signal that there is uncertainty. By itself it is definfitely not adeqate to generate a buy signal.

It does not qualify as an inverted hammer, becasue the latter has a larger body and has no tail and has a wick approx. no more than twice the length of the body.

Also, it does not form a harami with the preceding engulfing downside candle because being a doji it does not have a body. A smaller body less than the preceding engulfing body is required for a harami.

If it had gapped down it would have become a doji star which is a strong signal, though requiring confirmation. It did not.

So we are stuck with this sigle doji signaling uncertainty but not to be acted upon. Wait another day and read each and every day as it comes. That is what I would do, in my humble opinion.

Plodder
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Slim
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PostPosted: Sat Mar 26, 2005 1:40 pm    Post subject: body Reply with quote

Plodder -- How large does the body of the candlestick have to be to become a hammer and also at what size does the body of the hammer become so large that it is no longer a hammer ?
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Slim
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PostPosted: Sat Mar 26, 2005 1:54 pm    Post subject: min/max Reply with quote

I should have addressed the above question to the forum at large as I am sure there are others with an opinion also. So --- what is the minimum / maximum size of a hammer body ? Thanks.
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Charles
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PostPosted: Sat Mar 26, 2005 3:42 pm    Post subject: hammer body size Reply with quote

The minimum size for the body is .1875 inches and the maxium size for a hammer is .53125 inches. If the body falls out of that range then it is not a hammer. Thats how small/big the hammer is and everything else is something else.
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Plodder
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PostPosted: Sat Mar 26, 2005 3:58 pm    Post subject: EYE Reply with quote

Slim,

I hope other people will submit their opiniions so that we all can learn together from each other. That is what we want and I hope to learn from other feedback comments.

Regarding the Inverted (upside down) Hammer. The following is my understanding:

(1) It has no tail or extremely tiny tail.

(2) It has a body but not a doji body (non existant or extremely tiny body). Relative to the other preceding candles it has a small body. Examine the past candles and judge for yourself. Examine it in the context of the candles that preceded it for this particular stock. It would have a small body relatively speaking for EYE stock.

(3) It has a pronounced wick but not more than twice the length of its body. So the wick must not be an extremely high wick, but less than 2 times the body height.

(4) It looks like an upside down hammer having a pretty heavy head like a mallet.

(5) It is better if the body of the Inverted Hammeer gaps down but it is not necessary. (However a gap is required for a Shooting Star, the same look as the Inverted Hammer, which occurs at the top of a trend.)

(6) It is better if the body of the Inverted Hammer has the up color rather than the down color.

(7) By itself, the Inverted Hammer should not be reason to enter a trade to the upside, even if it gaps down. Confirmation is strongly recommended.

(Cool Agressive investor: Checks for open next day to see if it is higher than the body of the Inverted Hammer. Takes action right away.
Conservative investor: Waits for the close of the next day to see if it closes above the body of the Inverted Hammer. Takes action the following morning.

Whew!!! That's my understanding. I am waitng for critiques and complaints!!!

Plodder[/b]
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tab321



Joined: 22 Jan 2005
Posts: 368
Location: Texas

PostPosted: Sat Mar 26, 2005 4:05 pm    Post subject: Size of Body etc Reply with quote

Charles:

I got a tricky one I am looking at. On Zoom 7 it meets the criteria but on Zoom 6 it does not meet the criteria. What Zoom Scale am I supposed to use?
Quote:
minimum size for the body is .1875 inches and the maxium size for a hammer is .53125 inches. If the body falls out of that range then it is not a hammer

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candlestick1
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Joined: 27 Jun 2004
Posts: 503
Location: Houston, Texas

PostPosted: Sat Mar 26, 2005 5:03 pm    Post subject: Hammer Reply with quote

The body of a hammer signal is not the important criteria.
The lower shadow needs to be two times greater than the size of the body. The hammer illustrates that the bears were hammering out the bottom before the Bulls step in. The lower shadow is what will be the significant factor.

The minimum size of the body would be represented by the dragonfly doji, where it opens at the high of the day, trades lower, then closes at the open price, a high in the day. Once again, the significant factor is the length of a lower shadow. The longer the lower shadow, the more significant the reversal indication.
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Plodder
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PostPosted: Sat Mar 26, 2005 5:38 pm    Post subject: EYE Reply with quote

Candlestick 1,

I thought Slim had identified the last candle 3/24 as an upside down hammer, known as the Inverted Hammer. I had replied with what was my understanding of the criteria for an Inverted Hammer.

Now if we examine the same candle again (3/24) I doubt very much we can call it a hammer, upright (not inverted). In my humble opinion, it is a doji, no question. An upright hammer has no wick or close to non-existant wick. This candle has a huge wick. A hammer has a body, albeit small in comparison to other EYE candles. This candle has no body.

My humble conclusion is that this doji is indicating indecision on 3/24. Nothing more. I urge caution.

I stand to be correted once more. We all can learn.

Plodder
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dtdtrader



Joined: 15 Sep 2004
Posts: 24

PostPosted: Sun Mar 27, 2005 6:54 pm    Post subject: Reply with quote

Aren't we talking about a gravestone doji here versus an inverted hammer? I don't think I've ever seen a numerical representation of what makes a candlestick signal before. Where did those numbers come from? IMO, if you get a strong open on Monday, it's a fairly safe entry. Of course, it will help if the indexes are opening strong as well. If it closes below the 200 DMA, get out.
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Charles
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PostPosted: Sun Mar 27, 2005 9:44 pm    Post subject: Hammer dimensions Reply with quote

To get the hammer dimensions mentioned in the post above I got out my dial caliper and measured a couple of nice looking hammers on my charting system and they looked good to me so I decided to use those dimensions. How do they look to you ?
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