Candlesticks: Buying Hammers

The candlestick pattern we will be evaluating in this article is a “hammer.” Hammers are bullish reversal or continuation signals. When they follow a downtrend or a downside correction within a larger uptrend it is wise to pay attention.

Candlesticks: Using Dojis

Dojis are usually considered trend neutral when viewed all by themselves but they do indicate trader indecision and a lack of momentum. That means that the market context within which the doji appears is very important.

Trading Stock and Futures Price-Gaps

Stock and futures charts will create gaps when the market moves before trading opens each day. These gaps can create very useful trading signals for active traders.