The free advanced forex trading strategies PDF from traderpulse.com is a great way to learn the advanced fx trading strategies the hammer, inverted hammer, and also learn how to use the support and resistance levels.
Support and resistance levels are in the advanced forex trading strategies pdf because they are an important benchmark for many of the fx trading strategies, not just the advanced strategies like the hammer and inverted hammer. Support and resistance levels are not really a forex strategy in itself, although some people do just trade support and resistance levels as a fx strategy.
Identifying the support and resistence levels are crucial for also identifying good hammers. Hammers are identified by the candles on the chart that look like a hammer. The top part of the candle is fat and the bottom part is thin and twice as long as the top portion. See the pic below.
Depending on where the hammer is formed is what determines whether the market is going to develop a strong uptrend. Trends inside the fx market help traders secure big profits because it means the market is going to rise (uptrend) or fall (downtrend) for a long length of time. Inside the PDF you will discover why it is importand to know where the hammer is formed in relation to the support and resistence levels because those levels determine whether the market is headed for a real uptrend or a false breakout.
The advanced forex trading strategies PDF also goes into detail on how the bear traders and bull traders fight each other as they reach support and resistence zones.
The inverted hammer is exactly how it sounds. It is like the hammer above its just upside down. The PDF goes into detail on how to identify the inverted hammer on the chart and use it as a fx trade strategy.
Identifying hammers and inverted hammers on the chart are not always used just as a trade strategy. Similar to support and resistence zones, the hammer and inverted hammer can help identify information such as market sentiment and act as a support and resistence level itself.
Before utilizing the hammer and inverted hammer forex trading strategy in a real market account make sure to test the strategy in a demo account. A free forex demo account allows you to concentrate on identifying this strategy on the charts for multiple currency pairs. After becoming successful and mastering the strategy you can then transfer your expertise to the live account for trading.
Download the free advanced forex trading strategies PDF