Superior Trading Skills through Education

Hammers and Shooting Stars Print
Written by Site admin   
Sunday, 19 April 2009 18:46

One of the very best Candle patterns is also the simplest to identify. The Hammer looks a little like one, it has a long lower wick/tail/shadow with a small head. Ideally, it is an up Candle, where the close is higher than the open, but that's not vitally important.

There are two important qualifiers. Firstly, it needs to be found in the right place and there also needs to be evidence of involvement. A Hammer is a reversal Candle, but only when it is found after a decline. At number of prior down bars must precede it. The second qualifier is involvement and that can be seen from observing the volume on futures or stocks, or tick activity with Forex charts. The higher the volume plot the better, but it should be at least greater than the average of the last three plus bars. Why is this? read on...

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From the blog

Could this be an Explosive New Year


Could this be an Explosive


New Year?

(Watch the video)

Dear Trader and Clickevents reader

We've just completed the first full week of trading of the New Year without too much market drama. Trumpism has finally expired, exploding in Washington.

Biden-Harris will of course be a safe pair of hands, the Vaccine is on the way and markets are behaving themselves. What's not to like?

And Bubbles...

Jo and Kamala will just keep the money supply, inflation pump pumping, and all that debt will miraculously melt away.

They can then allow the Stock market bubble, Bond bubble, Bitcoin bubble, Gold bubble to deflate gradually.

Alternatively, it all becomes explosive. Watch the New Year video here.

It's going to be a great year for traders.....

As ever, send in your views by replying to this email

Kind regards and best wishes for 2021

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