We talked about a reversal candlestick today in class. One example is the "Hammer" (or Hanging Man):
The Hammer usually reverses a downtrend in price into an uptrend, showing a change in price momentum, where the "bulls" overtake the "bears":
On the other hand, there is the "Shooting Star" candle:
The Shooting Star usually reverses an uptrend in price into an downtrend, showing a change in price momentum, where the "bears" take over the "bulls".
NOW, just today on the NASDAQ Index, there were some clear reversing candles during the day. Each candlestick represents a 10 minute period during the day.
1) HOW MANY REVERSING CANDLES CAN YOU FIND? (HINT: there isn't more than 5)
2) HOW MANY "HAMMERS" AND HOW MANY "SHOOTING STARS"?
UPDATE: I posted the NASDAQ Index from 2/24, BUT it was a dynamic link. So, the chart updated on 2/25 for the current day. I reposted the historical chart I wanted you to see, so you should guess again:
For example: 4 Reversing Candles= 1 Hammer & 3 Shooting Stars
