Friday, December 28, 2012

Reversal Candlestick Pattern

So far it looks like the 3C charts from yesterday and the prediction based on them is correct, at least the first part which is actually the first part of a candlestick upside reversal off yesterday's bullish daily Hammer Candle...

This is the SPY daily, yesterday we saw a bullish reversal hammer candle for the closing candle, it's not rare at all, in fact it's one of the most common follow up candles after a hammer to gap down in the morning and close at the high end of the range in the afternoon, essentially swallowing the entire body of the previous hammer candle, it's called an engulfing confirmation candle (I drew it in yellow-we already have the gap lower open needed for the candle).

I'm not saying we have a straight bee-line to the upside, I'm just saying based on yesterday's charts, the closing candle and futures, this looks like a probable scenario for today.

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