Granthara04.03.03Inverted hammer and shooting star

Every price in Part 04 comes from an unnamed vegetable market and is a teaching example. Nothing here is a quote, a recommendation, or a record of any listed company.

04.03.03 · Inverted hammer and shooting star

PreviouslyA long shadow below a small body is a hammer after a fall and a hanging man after a rise.

The same shape, upside down.

A rumour reaches the market before seven: the crop has failed in the next district. Onions open at ₹30 and run to ₹32.40 inside the hour. By nine somebody has telephoned somebody, and the bidding sags back to ₹29.80.

One long shadow, this time above the body. The naming works exactly as it did yesterday.

Updated

₹2.40
reached upward and given back, on a board that finished twenty paise below its open
Part 04 · Reversal Patterns
  1. 04.03.01 Doji family: standard, long-legged, dragonfly, gravestone
  2. 04.03.02 Hammer and hanging man
  3. 04.03.03 Inverted hammer and shooting star
  4. 04.03.04 Bullish and bearish engulfing
  5. 04.03.05 Harami and harami cross
  6. 04.03.06 Piercing line and dark cloud cover
  7. 04.03.07 Morning star and evening star
  8. 04.03.08 Tweezer tops and bottoms
  9. 04.03.09 Doji stars and the abandoned baby
  10. 04.03.10 Three inside up and three inside down
  11. 04.03.11 Three outside up and three outside down
  12. 04.03.12 Tristar, two crows, and the upside-gap variant
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Learn

Four numbers, and a shape you have already met

First bid ₹30.00. Highest ₹32.40. Lowest ₹29.60. Last bid ₹29.80.

The body is small and sits near the bottom of the range. Above it runs a shadow of ₹2.60 — the record of prices that were reached and then abandoned. Turn yesterday's board through half a circle and this is what you get.

You have seen these four numbers before. At 04.02.02 this was the rumour morning, used there to show a rejection candle without giving it a name. The name is the only thing being added now.

Granthara's rules engine calls the geometry an inverted hammer shape and refuses to go further, for exactly the reason it refused yesterday.

See it

The same board, dropped into two different weeks

The picture from 04.03.02, mirrored. Four numbers held fixed; only the week before them changes.

The same two weeks as 04.03.02, and the same fixed board — only the shadow has moved to the other side of the body.

Learn

Four names, one mechanism

Put the two lessons together and the whole of this corner of the chapter is a single table. A small body, one long shadow, and two questions: which side is the shadow on, and what was the week doing?

Shadow below, after a fall — hammer. Shadow below, after a rise — hanging man. Shadow above, after a fall — inverted hammer. Shadow above, after a rise — shooting star.

Four names, two questions, one geometry seen two ways up. Nothing else is being measured, and no fifth name is hiding anywhere: everything else in the literature is a variation on how long the shadow is or how small the body is.

Learning four names here is learning one idea twice. That is the whole of it.

Learn

What the board permits

It permits you to say that ₹32.40 was reached and not kept, and that the last bid finished below the first. It permits you to say that on this morning the upward test failed.

It does not permit you to say that the rumour was false, or that anyone was trapped, or that the rise is finished. A shooting star is not a sell. The literature is full of shooting stars followed by another three weeks of higher closes.

And it does not permit you to say the shape was inevitable. The rumour is a story that makes the morning readable; the four numbers would look exactly the same if nothing had been said at all.

Before the chapter changes gearEverything up to here has been one board, read on its own, named by the week beside it. From the next lesson onward the patterns need two boards, and the relationship between them is the thing being measured.
Remember

A small body near the bottom of the range with a long shadow above it is one geometry with two names: an inverted hammer after a decline, a shooting star after a rise. With 04.03.02 it makes four names from two questions — which side the shadow falls on, and what the week before was doing. Neither question is about the next session.

Everything this chapter has told you, in order

  1. 04.03.01Open and close nearly meet; shadows and context complete the picture.
  2. 04.03.02One shape, two names: the trend that came before it supplies the name.
  3. 04.03.03Flip the shape and the rule is unchanged: the trend before it supplies the name.
Next
04.03.04 — Bullish and bearish engulfing

Next: the first pattern in Part 04 that cannot be seen on one board at all.