The bullish hammer candle stick pattern must be my favorite of all of them. In fact, I think its the only one (in addition to the bullish outside reversal day) that I give any recognition to as it has correctly forcasted (in combination with other indicators I look at like T 2108) advances in the markets on numerous occasions since I have started trading. Today I am seeing several stocks shaping up to form this bullish hammers and the outside reversal day by market close including YUII and FSII two of the stocks on my watchlist.
I am so convinced that we are going to bounce at least short term that I have initiated positions in both YUII, ASPS and FSII buying 200, 100 and 390 shares of each respectively. I may be jumping the gun but I like what I am seeing especially after a huge gap down in the markets this morning.
Right now I am risking about $320.00 inlcuding commissions. Hopefully I get the follow through I was anticipating on the 8th of February this time around in my positions. My target is a profit of 3x my risk or about $1,000.00 but I will take whatever the market offers!