WEALTH UNIVERSITY

[Profe$$or]

Here is another interesting chart setup here called The Hammer.

This pattern devleops at the bottom of a downtrend when the sellers continue their sell-off during the day but fail to hold it by the close. The long shadow below the candle body tells us how far the sellers took the price down before the buyers stepped in and forced them into a retreat. The hammer pattern does require confirmation. YOU NEED TO WAIT UNTIL THE DAY AFTER THE HAMMER PATTERN TO VERIFY THAT THE BUYERS ARE GOING TO CONTINUE PUSHING THE STOCK BACK UP. One to watch, at the very least, for educational purposes.