>I have a suggestion! Pay attention! In the past two years, the magic spreadsheet described in Part I found a single white hammer, on May 27, 2004. It was a hammer with the shadow at least 3 times the body. >It looks it was the start of an uptrend, right? Yes, and the closeup is shown in Figure 1 and if we ... >I can see the hammer, but I can't see much of a pattern. Uh ... neither can I, but we're just learning this stuff, so be patient. >But what about that nice minimum between February and April?

Figure 1

>It looks like a doji.

Yes, it does, so ... >So dojis are better than hammers, right? Are you kidding? We need much more study to conclude anything ... but that doji sure looks good. Actually, the difference between open and close was $0.02, but it looks like a doji on the chart, so I don't think we should be too fussy. Remember, we just want to investigate occurrences of certain patterns to see if ... >To see if they're any good. Exactly. See that nice maximum in December/04? Here's a closeup in Figure 3: Figure 3

Figure 2

>Aha! So white hammers are better than dojis!
Well, that Dec 8/04 hammer doesn't have much of a shadow ... compared to the body.

>Somebuddy said we shouldn't be so fussy.
Yeah, well we need more examples.

>I have a suggestion!
Okay, what is it?

>This one!  

Yeah! A good one!