What this market video covers
A hammer shape can pass while confirmation fails. This historical Bank of America replay uses completed five minute IEX bars from October eighth, twenty twenty six. Three prior closes decline. The highlighted candle has a three cent body, an eight and a half cent lower shadow, and no upper shadow. Our declared screen requires the lower shadow to be at least twice the body, and the upper shadow no larger than half the body. The ratio is about two point eight three, so this shape passes. Now declare a separate confirmation rule: the next completed candle must close above the hammer high, fifty two point eight nine. Its high reaches fifty two point nine oh five, but its close is fifty two point eight seven. That close fails. A wick above the high is not a qualifying close. Keep shape, context and confirmation separate; none guarantees a profitable reversal. Historical observed market-data replay. Educational content, not personalized investment advice. Sources: https://chartschool.stockcharts.com/table-of-contents/chart-analysis/candlestick-charts/candlestick-pattern-dictionary https://docs.alpaca.markets/us/reference/stockbars #BAC #Hammer #CandlestickPatterns #TradingEducation #Shorts
Use this analysis as general education. Confirm current prices and conditions independently, define invalidation before entry, and size every position for the loss you can actually tolerate.