This is a reversal pattern.  On 18-1-16 a hammer pattern was formed.  Previous to this the trend was bearish.  The body is green.  There is no upper tail.  On 19-1-16 the price managed to open above the high of 18-1-16.  So I have taken the entry level as Rs 2445.70.  The lowest rate on 18-1-16 is Rs 2378.50.  It is my Stop Loss level.  Two times the risk taken is my target at Rs 2580.  The volume is good during Hammer day.  Also the previous day was a red body.  

2 Comments
  1. Naresh 2 years ago

    Hi,
    Volume should be high during the hammer day because a candlestick reversal pattern on high volume carries more weight than a candlestick reversal pattern on low volume. (Note-Kindly check the volume portion on the hammer day )

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