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Daily Trading Opportunity: Forming Hammer pattern in price

Hammer Candle Stick pattern in price is one of the most successful forecasting patterns for anticipating price increases. 4CastMachine software studies and discovers forming Hammer pattern in the price in all charts. As a result, we can rapidly 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 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 Candle Stick pattern in the Daily Charts, the probability of the price increasing more – tomorrow and after that - is very high, so we can enter the market by buying trades.

Forming Hammer on AUDJPY

Example:

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

Strength of Hammer is 43.

 

Forming Hammer on AUDJPY Performance

Performance of Buy Trade:

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

 

In many cases, however, great increases happen after forming a Hammer pattern as the sign of rising, so it is better to consider other technical reasons to support the guess of price rising and then think about making a trade. If a Hammer pattern is accompanied with an uptrend or is in a support area, there will be a very good and better trading opportunity.

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

Formation of a new Hammer Candle Stick pattern in an uptrend shows that a new rising wave is starting and 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 a strong uptrend and a strong Hammer pattern for GBP/CHF Pair on 2014.05.09.

Strength of Uptrend is 26.

Strength of Hammer is 65.

 

Forming Hammer on GBPCHF Uptrend Performance

Performance of Buy Trade:

As seen in the front image; the buying 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, buying 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.

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, the buying trade produced more than 1300 pips profit.