Hammer: Hammer candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. The resulting candlestick looks like a square lollipop with a long stick. If this candlestick forms during a decline, then it is called a Hammer.
Has Gold Finally Bottomed?
I’ll be the last one to call it as I am relatively new to the world of gold – but can tell you it’s been a complete and total grind for the past few months. This particular candlestick formation is usually a pretty good sign that buying interest has started to creep back in. Usually a trader will wait for an additional days candle to form (ideally closing above the high of the hammer) before entry.
If it provides any relief going into the weekend – I for one have considerable confidence that we should see some higher prices moving forward.
Kong…. any advise on obtaining local renting in your area…. out even purchase…. looking to move by end of 2013…. I am also tired of the horsecarage mentality and way of life…
I’ve sent you an email Schmed.
Lots of nice places for rent here.
Thanks…. just rapping up a trip in Dominican…. nice here… weather has been great…. thanks Kong…. chat soon….
I also agree on the dxy…. the last move was all hot-air…. I also look at historical trends for the PM sector…. there are a lot of clues …. example…. gold has only performed well in Dec 2X since 2000…. remainder is flate of neg…. I tried to share with some but got shot down…. waste of time…. ….I’ll share some later…. nap time…. lol