The Japanese hammer strategy is straightforward to use and can be used for any temporality that we want, it can be beneficial in 60 seconds, but the more time, the more effective our Japanese Hammer Strategy will be.
The Japanese Hammer
The Japanese Candles, also are known as Candlesticks, are a graphics and analysis technique used in economics initially by the Japanese. Although the Japanese have been using this technique of graphics, and analysis for centuries, in the Western world has become known in recent years, specifically in the decade of the 90, since Steve Nison introduced them. The expression, “candles,” refers to two different, but related themes. The first, and probably the best known, is the method of exposing information about values and futures to perform the graphical analysis. The second is the art of identifying certain combinations of known and tested candles. Luckily, both techniques can be used combined or separately.
Now that we know a bit about the Japanese candles or Candlesticks, we will focus on the pattern of the Japanese Hammer. This type of candle is found when the trend is rejected and can indicate a possible turn in the bullish trend. Later I will explain other types of candles that can give us, but now we are going to focus on the Japanese Candle Hammer Strategy.
The Strategy in Brief
The strategy is straightforward; we should only wait for the formation of this type of candle that would indicate that there may be a possible change in trend or some correction in the price. For this, we must be present in front of the chart every time we close the candle waiting for that pattern to occur, so if we operate in 4 hours, we should only be present during the time it closes.
If we operate in 60 seconds, we should be all the time present because at any moment I could have free binary signals. I must clarify that the shorter time we have more possibilities to receive a signal, but that signal also has more chances to be false, so we must study the asset and see what percentage of success using this strategy Japanese Candle Hammer. It may be that this strategy with the Dow Jones index is more effective in 60 seconds than in 4 hours or an hour, so everything has to be studied and verified, so you will have the confidence to understand the Japanese Hammer strategy.
Generally, this type of training is found in the area of resistance and support, and if you are not familiar with this type of strategy, I advise you to study it before you start Resistance strategy and supports for binary options. Once we understand the resistances and supports, we should apply both at the same time, in this way its usefulness will double when we find some Japanese Hammer.