HOW CANDLESTICKS CAN HINT A BOTTOM - ANALYSIS!
**NOT A RECOMMENDATION TO BUY**
A single candle by itself is rarely sufficient reason to forecast an immediate reversal. It could, however, be one clue that the prior trend may
be changing. HERE in this chart a Hammer that formed after an extended sell off hinted sth is cooking for the HINDZINC stock as the bears tried to push the stock lower after a large hammer is formed ,bulls defended and came out successfully holding the bottom that was tested by hammer , In Japanese terms hammer implies to market to be testing the depth of the water! Long white candlestick (BULLISH) on a higher timeframe neat the bottom range of the established hammer showed that bulls are coming back in force to absorb all the selling force and successfully defended as shown in the chart of Hindusthan Zinc .
Small body candles denoting high wave,inverted hammer and spinning tops with high volume sessions indicated the accumulation of the stock while the prices went to test the hammer!
all the above factors combined with a trendline break and the prices failing to reach the lower end of the channel showed that a rally is to be expected & on the break of resistance zone 150.2 and it did breakout with a strong white candle showed an BUY oppurtunity!
price's holding with volume and long shadow with smaller bodies after appearance of hammer all signified the bulls are taking charge through accumulation on reaction to the hammer signified a wothwhile watch!
this can provide a meaningful insight for future analysis in a different stock and sector is the essence behind sharing this analysis!though it is past it can repeat in some other scrip so that there shows a valuable signal to BUY!
A single candle by itself is rarely sufficient reason to forecast an immediate reversal. It could, however, be one clue that the prior trend may
be changing. HERE in this chart a Hammer that formed after an extended sell off hinted sth is cooking for the HINDZINC stock as the bears tried to push the stock lower after a large hammer is formed ,bulls defended and came out successfully holding the bottom that was tested by hammer , In Japanese terms hammer implies to market to be testing the depth of the water! Long white candlestick (BULLISH) on a higher timeframe neat the bottom range of the established hammer showed that bulls are coming back in force to absorb all the selling force and successfully defended as shown in the chart of Hindusthan Zinc .
Small body candles denoting high wave,inverted hammer and spinning tops with high volume sessions indicated the accumulation of the stock while the prices went to test the hammer!
all the above factors combined with a trendline break and the prices failing to reach the lower end of the channel showed that a rally is to be expected & on the break of resistance zone 150.2 and it did breakout with a strong white candle showed an BUY oppurtunity!
price's holding with volume and long shadow with smaller bodies after appearance of hammer all signified the bulls are taking charge through accumulation on reaction to the hammer signified a wothwhile watch!
this can provide a meaningful insight for future analysis in a different stock and sector is the essence behind sharing this analysis!though it is past it can repeat in some other scrip so that there shows a valuable signal to BUY!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.