If you are serious about creating real and lasting financial wealth with gold trading on the forex market, it all starts with research and due diligence.
Trading gold online is easily one of the most exciting investment vehicle opportunities out there today, and one that can help you secure the kind of financial future you’ve always dreamed about. This is especially true if you’re intelligent about leveraging technical indicators like “hammer candlesticks.” At the same time, you still need to be smart and savvy about the move you make to capitalize on these investment chances.
Here are just a couple of things to remember when you’re looking to strike it big with online gold trading:
An Introduction to Hammer Candlesticks
Hammer candlesticks, also commonly referred to as “pin bars,” are a form of bullish reversal candlestick pattern. As the name implies, hammer candlesticks look like Thor’s hammer, with a short body and long lower wick. As a technical indicator, a hammer candlestick indicates that a price reversal has just begun.
A lot of experienced forex traders look for exactly this kind of signal to let them know when low risk, high reward trade possibilities open up. Even some of the most seasoned forex traders aren’t able to capitalize on these hammer candlesticks as often as they would like to take advantages.
Pay attention to the inside info below and you should be able to take advantage of this leverage much more efficiently than most.
Hammer candlesticks on their own are almost worthless
The biggest mistake that otherwise smart and savvy forex traders make when looking for hammer candlesticks is that they pay attention only to the immediate signal and not the history of the XAU-USD pairing.
Do not make this mistake.
Hammer candlesticks all on their own have no real predictive power to tell you what’s going to happen to the price or value of an asset, which is why you’ll want to do your research to determine what the historic value of that asset is, what its activity has been like in the past, and how long you have to take advantage of this opportunity.
Again, rewards will always flow to those that handle their research and due diligence.
Look for specific traits of hammer candlesticks to cash in big time
There are a couple of specific traits that beneficial hammer candlestick signals will have, including:
- Price breakouts next to the candlestick
- Candlesticks that open and close near the top or bottom of a price range
- Candlesticks that are larger than previous ones
You focus on making moves when these criteria are met, you should be able to cash in on these candlestick opportunities in the world of online gold trading.
