Hammer

The Hammer is a figure of technical analysis which is formed in a downward trend and outlines an inversion of the market trend. The pattern is comprised of one long candle, formed as a result of a price rebound from the bottom, in addition to a short body. When a hammer which is a bull inversion pattern forms, it is not recommended to open long positions immediately; it is better to wait for further data which confirms the change in the price’s direction.

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  • Tuesday, December 15, 2015
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