Watch This Candle: #AUDJPY Hammer Weekly | #FOREX

FX:AUDJPY   Australian Dollar / Japanese Yen
Introducing another posts type named " Watch This Candle", I will try to spot and explain the main important candlesticks patterns. I wish you like it. If you do please comment and agree so i continue...
Candlestick Pattern: Hammer
Prior Trend: Down
Implications/Use: Bullish reversal, Bullish correction, good for scalping

One of the most powerful tools in gauging shifts in market balances, the hammer candlestick pattern is one of the patterns I personally find extremely useful in the process of determining trend reversals.

There are plenty of candlestick patterns; however the hammer is of the most illustrative.
Hammer candles form when a security moves sharply lower after the open, but rebounds to close significantly above the low of the session.

The shape

The Hammer has a long lower shadow with a small body, the lower shadow should at least be double the size of the body, and the body can be green(up) or red(down), however through my experience I find the ones with green body more reliable.

The Hammer should be preceded by a clear downtrend or at least several down days.
Note: breakouts below the low of the hammer usually lead to further bearish movement, and confirms bearish continuation.
$$ It's strongly recommended to always use candlestick patterns in conjunction with other technical tools to increase the chances of success. For example, a hammer near a support level or the 50-days Simple Moving Average .
Note: breakouts below the low of the hammer usually lead to further bearish movement, and confirms bearish continuation
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I want ask you .. what you think here AUDJPY can continue go downtrend haromic fibonacci 76.8% this is very good! i want sell here when here market is open!
Technician nappenbir
I cant tell you, coz you might be right and i might be wrong, there is nothing for sure in trading.. But for me, i am bullish on AUDJPY
Technician Technician
for the short term
Otinanai638. Technician
i am bullish too
Hi Technician, your posts are always interesting thanks for that.
Most publications document the hammer ratio (wick/body) 3:1, I usually pay attention more to the speed the candle forms its wick.
For example a red weekly hammer with less than 3:1 ratio that forms it’s wick in the first day of the week and it’s daily lows and highs keeps ranging within the body for the rest of the week is more reliable to me than a green 3:1 hammer that price was ranging between its high and low for the whole week.
Technician NidalDarawsheh
Great input thanks, Agree that the hammer should have a 3:1ratio or more, and i also prefer green hammers for the bullish case. In terms of intra-candle movement, I dont give too much weight to that, but i slightly prefer hammers that start the week lower and end the second half of the week higher, and apply that to all timeframes.
+1 Reply
i like...
I will remove the shooting star part of this post, and post a totally different post on shooting star. But basically its the opposite.. Always use candlestick patterns in conjuction with other technical tools to enhance your chances...
+1 Reply
jangseohee Technician
100% agree using candlesticks MUST be coupled with other weapon :-)
+1 Reply
Hammer, shooting star, candlestick patterns in general is music to the ears :D
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