Candlesticks are more powerful when combined with other aspects of technical analysis. Noble Energy (NE) gapped down and formed a hammer in early July. Over the next two days, a piercing pattern formed to further affirm support around 28. The catalyst came when the stock surged above 29 with good volume to confirm support and the piercing pattern. Note: This is an educational post featuring a technical analysis technique.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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