| Your chart was a weekly chart, and the previous week formed a candle that could loosely be interpreted as a hanging man (a bearish trend reversal candle) although strictly speaking, its tail is too short since it's less than double the body. You can't have a hammer at the top of an advance, only at the bottom of a fall. It's called a hanging man when the same candle formation as a hammer is formed at the top of an advance. Candle interpretation doesn't rely on overbought or oversold status, but there's nothing preventing you from combining techniques. I still don't understand your interpretation for the above reasons. |
