A Golden Hammer – Has Gold Bottomed?

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?

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.

3 Responses

  1. schmederling January 5, 2013 / 2:01 pm

    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…

    • Forex Kong January 5, 2013 / 2:19 pm

      I’ve sent you an email Schmed.

      Lots of nice places for rent here.

      • schmederling January 5, 2013 / 3:22 pm

        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

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