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Daily Trading Opportunity: Forming Hammer pattern in price

Forming a Hammer candlestick pattern in price is one of the most successful patterns of forecasting the ascent of prices. 4CastMachine software analyzes and discovers forming Hammer pattern for all charts.
As a result, we can quickly and easily pay attention to just the charts in which an important increase is occurring and where a very good trading opportunity has been set.

Positive numbers in Hammer/Shooting Star show a Hammer forming. Strengths of Hammers are between zero to around 100: the higher the number, the greater the strength.

As the strength of each pattern is directly related to the probability of its success, it is better to collect the ones which have more strength.

 

A good trading opportunity: Forming a Hammer Pattern

By forming a Hammer Candlestick pattern in the Daily Charts, the probability of the price increases more – tomorrow and after that - is very high, so we can enter the market by buy trades.

Forming Hammer on AUDJPY

Example:

Considering the front image, 4CastMachine shows a strong Hammer for AUD/JPY pair on 2013.08.29 forming.

The strength of Hammer is 43.

 

Forming Hammer on AUDJPY Performance

Performance of Buy Trade:

As seen in the front image; buy trade produced more than 600 pips profit.

 

Although in many cases, after the formation of the Hammer pattern as the only sign of an upturn, great rise also occur, but it is better to have other technical reasons to reinforce the price rise guess and then think about making a trade.

If a Hammer pattern is accompanied by an Uptrend or is in a Support area, there will be a very good trading opportunity.

 

A very good trading opportunity: Forming a Hammer pattern in an Uptrend

Formation of a new Hammer Candlestick pattern in an uptrend shows that a new rising wave is starting and the uptrend is resuming. So, a Hammer pattern in an uptrend is a very successful trading opportunity.

Forming Hammer on GBPCHF Uptrend

Example:

Considering the front image, 4CastMachine shows an uptrend and a strong Hammer pattern for GBP/CHF Pair on 2014.05.09.

The strength of Uptrend is 26.

The strength of Hammer is 65.

 

Forming Hammer on GBPCHF Uptrend Performance

Performance of Buy Trade:

As seen in the front image, buy trade produced more than 380 pips profit.

 

 

A very good trading opportunity: Forming a Hammer pattern in a Support area

The most important technical factor which prevents the price from decreasing more and cause its rising to resume is a support area. If a Hammer pattern formed after price bounced from support area, buy trades have a high probability of success.

Forming Hammer on EURAUD Support

Example:

Considering the front image, 4CastMachine shows a strong Hammer pattern after price bounced from 1.4085 support level for EUR/AUD Pair on 2013.11.08.

The strength of Hammer is 53.

Also, you can see there is a valley at 1.4120 at the beginning of support area.

 

Forming Hammer on EURAUD Support Performance

Performance of Buy Trade:

As seen in the front image, buy trade produced more than 1300 pips profit.