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3. Advance Strategies

London Hammer Trade

This is quite simple to execute, as it revolves around volatile price movements during the open of the London market or as it draws to a close. The market volatility increases based on more traders becoming active. Many traders use it whilst trading the gold market.What is the London Hammer trading strategy?

When the London market opens, you start looking for a hammer. It’s a Japanese candlestick pattern characterised by a long lower wick (twice the length of the body), short real body, and little or no upper wick. That’s because sellers drove the prices lower during the first half of the duration, only for buyers to reject the low prices driving the price past the open by only a small margin. It might reflect how the market will behave in a given day. You have a stronger signal by combining it with support and resistance.

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