I'm naming this candlestick journal "The Collective" as I hope it will be a collaborative pursuit among those who are intrigued/fascinated by all the information contained in a candlestick. Recently I began watching Stephen Bigalow's videos and just picked up one of his books at the library, and as great as Steve Nison's work is, I'm more motivated and feel it is within reach to become skillful at reading candlesticks. Now that I have a daily chart up on a daily basis, I couldn't help but be aware on Friday how it was clear from the forming hammer/hanging man on the CL, that it was going to tag the 50 day ma, something it hasn't done in while, and then reverse. So it made me decide to begin this journal and focus on some aspect of candlesticks each time I make a journal entry so I can enhance my ability to read candlestick charts.
What stands out most for me in the recent daily CL chart, and I hope to imprint it indelibly in my mind, is that huge black bottoming candlestick and what happened after it. That black candle reflects a market that opened at about the high of the prior five days and immediately plummeted to the low in at least a year. Then the following day was a gap up and an equal and opposite white candle closed at its high. The following day a black hammer was formed as the bears tried to push down the price again, but to no avail after the strength of the prior day. That reversal was a herculean move and next time I see a similar formation I will feel very confident to buy on that pullback day the black hammer was formed. Then the following day was an even bigger gap up day.
ETA: Regarding the Hammer/Hanging Man from Friday, a move up on Monday will confirm that it was a Hammer while a move down will confirm it was a Hanging Man. I think, lol. In any event another move is required to confirm direction.
Just watched Bigelow's flick again and that bottoming and reversal pattern in Crude that just happened is called the Bullish Kicker and is the MOST POWERFUL candlestick setup that exists. It's a change in investor sentiment and indicates a good, strong trend that lasts a while. With that in mind, price should push above the 50-day ma, touch the 38% fib and move up to the 50% fib. The 50-day resistance should become support.