Placement matters.
Despite the whipsaws and trapping nature of the precious metal miners this week, they are going out with what looks to be an inverted hammer weekly candle after a prior established correction. The placement of this inverted hammer often signals a looming upside reversal. I would surmise that the action this week shook out plenty of bulls, but note below that the gold miners have not come close to taking out their lows from last summer.
In other words, the miner bulls are not in as bad a spot here as it seems–They just need to show up ready to play next week.
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Great observation,
Im looking at Gold futures , wouldn’t it looks like inverted hammer as well, sort of.
Hi Chess,
What in your opinion are the top candle stick patterns to pay attention to? All?
Hi, sir. The patterns that are rare but with high reliability and with multiple candles (rather than a single one needing confirmation like a hammer) are the best, such as the Three White Soldiers, Island Reversal, etc.
Thanks. I appreciate the response.