Indian Stock Exchange Nse/Bse Candlestick Pattern Part2
INVERTED HAMMER While it is a bullish formation, inverted hammer rather than being an indication of exact point of reversal of trend, normally gets formed as a first step in process of reversal of trend from bearish to bullish. This formation is an indication that the bulls have made their first attempt to fight back. Long upper wick indicates that some selling pressure did emerge at a higher level. The appearance of an inverted hammer requires more confirmation in terms of breakout of prices above downward sloping trend line along with a gap up opening on the day after the formation appeared. BULLISH BELT HOLD Formed after a southward trend, a bullish belt hold formation gives first indication of a possible change in trend from bearish to bullish. The difference between it and other bullish candle formations is that if the bullish belt hold formation gets confirmed by subsequent moves. Which should come in form of stock price sta...