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Silver Hammer

|Includes: GLD, iShares Silver Trust ETF (SLV)
aaronbasile.wordpress.com/2010/11/11/silver-hammer/

Today marks the second consecutive day that resulted in a hammer formation on the SLV chart.

There is one technical indicator that is saying something different form the rest. It’s the hammer candles of the previous two days. They are trying to set you up after the key reversal on Tuesday. If you look at the intraday chart, you’ll notice that this morning the sell volume was heavy and during the rest of the day the buying volume took over which is why you see the hammer. I don’t think that this is a coincidence at all. Don’t chase the chart, instead, wait for the chart to tell you when to buy.