Good day to learn what a Hammer is
Obviously you are probably busy and watching every minute of your quote screen at this point but I thought I should take this time to point an important Candlestick Pattern called “The Hammer”. It there yesterday on most indices and looks like it’s got a confirmation today.
As with all candles, the “rule of two” applies. That is to say, a single candle may give a strong message, but one should always wait for confirmation from another indicator before taking any trading action. In this case we have a confirmation today as it tested the previous lows and is closing at the high of the day, above yesterday’s high. If you want additional confirmation, look at how the Hammer “pierced” the elastic Keltner band… do you see anything like that in the past? Different isn’t it….
Does it mean we’ll continue going up? No, it means you should close your short positions (our should’ve yesterday), we might get a quick bounce…. Where is the trend? Down of course, my 8 years old could tell me.
Good luck to you tomorrow!
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