HAMMER - CANDLE FORMATION (BULLISH REVERSAL)

15 giu 2016

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:

• 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.