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.
(by Arthur Hill)
