Libra Esterlina/Dólar Neo-ZelandêsEducacional
HAMMER - CANDLE FORMATION (BULLISH REVERSAL)
The hammer is a bullish candle formation that forms at the bottom of a downtrend.
It begins with strong selling at the open but ends up closing near the open. It
suggests price action may rise in the near future.
NOTE:
TRIGGER:
It begins with strong selling at the open but ends up closing near the open. It
suggests price action may rise in the near future.
NOTE:
- This is only a valid formation when at a key level of support. The longer the wick to the
downside the stronger the reversal signal. The candle has to close above the open being
a bullish candle.
TRIGGER:
- Buy on the open of the next candle after the close of the hammer.
- After the close of the hammer wait for the open of the next candle to Buy a retrace of the hammer.
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