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Price Action Lesson 4: Weak hammer

FX:EURUSD   Euro / U.S. Dollar
Weak hammer:
For having successful and steady transactions, Simple detection of market patterns is not enough. But with a deeper look, we should calculate the success possibility of each pattern. One of the determining power Parameters of hammer stick is about Descending or ascending that the body can be. Thus, if the body of hammer is ascending, Possibility of starting an ascendant wave is very high.

The opening price of the day, is very important. This price - is the previous day's closing price, in fact it is the price that they had a war at in previous day where buyers and sellers come to equilibrium. So on the day that the Hammer is forming. If buyers can raise prices to the point of closing price of yesterday, and by the end of the day, they keep the price at the top of it, they will be the winners of the war. If we can raise the price above yesterday's closing price, they are not conclusive winners of today’s war, and this war will continue for the next few days.
Thus, if the body of hammer is ascending, Possibility of the beginning Ascending wave is very high. But if the body of hammer is Descending, Possibility of the beginning Ascending wave is less. In this case, it is said a weak hammer has made.

- The picture shows a hammer candlestick with descending body.

. As what can be seen, candle’s height is tall, but it has very short body height. Also Lower Shadow is long, and the upper shadow is very short.

. As regards the Closing Price of market is under its Opening Price, therefore the body of this hammer is Descending, and the power is very low. Possibility of the beginning ascending wave is less.
Comment: Price Action Lesson 1: Hammer Candlestick Pattern Definition
Comment: Price Action Lesson 2: Conditions of a Perfect Hammer
Comment: Price Action Lesson 3: Hammer, The first sign of the beginning Ascending wave
Comment: Price Action Lesson 5: Weak Hammer (Example)
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This is awesome! Thank you.
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+1 Reply
@Andrew138, Thanks, you're welcome.
+2 Reply
Very well explained, keep up this work!
+2 Reply
@pdoteter, many thanks
+1 Reply
Well explained, thanks a lot..
+2 Reply
Very good tutorial. Please keep it up!
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