|1 hour Candlestick Patterns Hammer, Price Reversal|
Candlestick Chart pattern
The Euro had a relatively quite session again today. Market price broke out of yesterday's consolidation pattern with the beginning of the new daily candle (Breakout trading) and the Euro made a new daily low but market hold at the daily S2 support.
At 10 a.m. the Euro created a hammer candlestick pattern and EUR/USD market price started to move upwards.
The three consecutive lows from 4 a.m. to 10 a.m. might be seen as a Three Drives pattern. Interestingly, the Euro always closed above the daily S2. The three consecutive lows tempered many breakout traders to go short following the breakout of yesterday's consolidation pattern.
These false breakouts caught many traders in the wrong position which often leads to a price reversal. The hammer pattern (Price rejection) initiated this price reversal and the EUR/USD moved back into yesterday's consolidation pattern. Yesterday's consolidation price zones acted as resistance as price approached this level again and the Euro reversed back down.
The 5 min EUR/USD chart shows some Fibonacci levels which could helped the trader to find entry and exit points. The red arrows show some false breakouts, which occurred today.
The 5 min chart also shows that we did not have a confirmed breakout through the daily S2. See Unconfirmed Breakout Candle
|5 min EUR/USD Chart Pattern|