Hammer and Evening Star
Evening Star and Hammer Chart pattern
|4 hour Evening Star pattern|
EUR/USDretraced up to the weekly Pivot point where market formed a kind of Evening Star pattern and market price started to turn around.
On the 1 hour Euro US Dollar chart (last 10 candlesticks) we see how market closed at support and breached it with the beginning of the new hourly candle [Breakout Timing setup-red ellipses, market closed at each support level (10 SMA, 20 SMA and daily pivot point)] and broke through it with the new hourly candle).
The repeated pattern of a bearish candle close at a support level and the following break of this support level with the beginning of a new candle often occurs in a strong bearish trend or a surge in downside momentum.
|1 hour Hammer candlestick|
|5 min Pivot points|