Japanese Candlestick Analysis
■ (^) A sellstop entry order may be placed at the low of the candlestick only if there
is evidence that the downtrend is still in effect.
See Figure 14.32. This is an example of a Hammer that was confirmed using
the high of the preceding candlestick. It was eventually confirmed but prices sub-
sequently reversed and the stoploss was taken out for a loss.
three White soldiers
figure 14.32 A Failed Hammer Pattern on the 15‐Min Chart of EURUSD.
Source: MetaTrader 4
figure 14.33 A Three White Soldiers Formation.