Download WHAT TO LOOK FOR TRADE !! if you see. A HAMMER, HAMMER

WHAT TO LOOK FOR
TRADE !! if you see.
A HAMMER, HAMMER PAIR OR A CANDLE TRIPLET COMINATION BEFORE OR AFTER A MO/FA
A HAMMER, HAMMER PAIR OR TRIPLET COMBINATION ADJACENT TO A PP.
THE CROSSING OF A PP BY A MO/FA CANDLE
F/A CANDLE = 5/15 MINUTES
M/O CANDLE = 5/15/60 MINUTES
FUNDAMENTAL ANNOUNCEMENT
PRE- FA
The candle before the FA is checked (any time frame). We check mainly the 5, 15, 30 and 60 min (or greater)
candles before the FA. If this pre-FA candle is a hammer (C > O i.e. green)/ (C < O i.e. red ) then there is a possible
trading setup. If the hammer is green at the top or red at the bottom of a move (> 100 pips) and the hammer
close is free and clear then trade in the direction of the hammer open. To confirm the certainty of the trade the
FA candle should be a type A and should close past the open of the hammer. if the hammer is a true hammer
then trade as you expect .if it is not a true hammer then expect some pull back and if it is greater than 3 x the
spread then it probably will not go in the direction expected. When a hammer is seen before a FA it will move
quickly after
POST-FA
Check the first 5,15,30 minutes after a FA if a hammer is formed. If this FA candle is a hammer (c >o i.e. green)/ (C
< O i.e. red ) then there is a possible trading setup. If the hammer is green at the top or red at the bottom of a
move (> 100 pips) and the hammer close is free and clear then trade in the direction of the hammer open. To
confirm the certainty of the trade the following candle should be a type A and should close past the open of the
hammer. sometimes the candles that immediately follow a FA hammer are not type A candles in this case wait
for the first type A candle and trade in its direction
If it is type A candle that is formed after the first 5,15,30,60 min then we check if it has crossed a PP and if so we
do the calculation and trade accordingly. If the calculated move > 100 pips then it will reverse
MARKET OPEN
PRE MO
The times frames before the MO are checked. We check the 5, 15, 30 and 60 min (or greater) candles before the
MO. If this pre-MO candle is a hammer (c >o i.e. green)/ (C < O i.e. red ) then there is a possible trading setup. If
the hammer is green at the top or red at the bottom of a move (> 100 pips) and the hammer close is free and
clear then trade in the direction of the hammer open. To confirm the certainty of the trade the following candle
should be a type A and should close past the open of the hammer. If the hammer is green at the bottom and red
at the top of a move (> 100 pips) then the trend will reverse. if an ideal hammer is formed before then the
market will move away from the MO with little or no pullback
POST-MO
The 5, 15, 30, 60 min (or greater) candle after the MO is checked. If this MO candle is a hammer (c >o i.e. green)/
(C < O i.e. red ) then there is a possible trading setup. If the hammer is green at the top or red at the bottom of a
move (> 100 pips) and the hammer close is free and clear then trade in the direction of the hammer open. To
confirm the certainty of the trade the following candle should be a type A and should close past the open of the
hammer. If it is an ideal hammer and is green at the bottom and red at the top of a move (> 100 pips) then we
trade in the opposite direction of the trend.
If this MO candle is a type A and closes past a pivot point then trade in the direction of the MO candle if the
calculated move is < 100 pip
PIVOT POINTS
Since most major pp are breached by a MO/FA it follows that the relevant previous points above are valid here