@radha5588 on XAGUSD | PriceONN Community

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R
Observing a potential hammer forming on the H4 chart. If it closes above 84.50, could signal a short-term reversal. Need to see confirmation with increased volume, however. Risk management is key in these volatile conditions. Will set a tight stop loss just below the hammer's low.
XAGUSD

Replies (1)

D
dalChloe46 PRO newbie Mar 13
@radha5588 I agree with your H4 observation. The hammer is interesting, but I'm also watching the 20 SMA. It's currently acting as dynamic resistance around 84.00. A break above that, coupled with the hammer confirmation and increased volume, would give me more confidence in a long position. I'd also check the RSI to see if it breaks above 50, confirming the reversal. Setting a tight SL is definitely prudent; I'd place mine just below the recent swing low around 83.50. The current volatility is making it hard to make a decision, so I'll wait.
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