Disliked
...... However I did not see on dungle's notes where he referenced that specific pattern, I'd like to read over what dungle wrote, if you could please tell me on what document he talks about that bullish continuation pattern that occurs after a hammer and bearish candle in an uptrend.Ignored
If you look at the page entitled "THE INTERACTION OF HAMMER PAIRS, MO/FA without PP" look at the two examples (II and IV) in 'setup 2' they are both identical apart from the colour of the hammer body and according to the table, the anticipated direction of price is the same in each case.
My trade was a doji/hammer type candle followed by a bearish bar. AFTER the bearish bar, the European market then opened at 07:00 gmt. My interpretation of Dungles table is that if EITHER 'market opens' OR 'news' (not both together) occurrs AFTER the bearish bar, then the anticipated direction is up (see table column "C=MO/FA" for examples II & IV). I am assuming "C" to be after the close of candle B.
We can only ever put our own interpretation on the info Dungle has supplied, never really knowing if it was what Dungle actually meant or not. However, on this occasion it worked out, so that was good enough for me! Like everything, I suppose it is up to the individual trader to do his own research and prove or disprove ideas for himself.
Just as a matter of interest, in addition to the colour of the hammer bodies not making any difference to the anticipated direction of price, I have also noticed that, according to Dungles tables, it doesnt seem to matter if price is at a pivot point or not as the anticipated direction is the same in either case, so I think the diagrams/tables could have been simplified a bit. Of course, this assumes my interpretation of Dungles work is correct.
I hope this answers your question. If you have a different intrpretation of the table I have referenced, please let me know as I would never rule out the possibility that I am wrong!