[B]“INDICATOR OF THE DAY” - BULLISH HAMMER FORMATIONS[/B]
Most of the time in our “Indicator of the Day” piece we discuss set-ups that our forward looking to really show exactly just how powerful the use of technical analysis can be as a tool of anticipated future directional moves. So we apologize in advance for today’s indicator which has already produced the result in which it should, to negate any opportunities for a potential trade.
[B]Gbp/Usd:[/B] On Monday we saw the pair manage to continue to extend declines off of the 1.6665, 2009 highs to 1.5800 ahead of the latest bounce. The setbacks on Monday to 1.5800 could not be sustained and the result was a rally back towards and above daily opening levels to set-up a very bullish candle formation called a [B]“Hammer.”[/B] The hammer formation occurs when the market moves significantly lower after the open but rallies to close well above the intraday low. In the chart above we can see that the bullish hammer close did in fact produce a bullish result, with the market rallying into Tuesday to trade just over 1.6200 thus far.
[B]Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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[I][B]“Indicator of the Day”[/B] – [/I][I]A Feature Report that Highlights our Most Significant Technical Indicator of the Day. [/I]
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[I][B]“Midday Snapshot” [/B]– A Midday Fundamental Update, along with Technical Analysis of Selected Rates. [/I]
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