Daily Market Analysis By FXOpen

Hanging Man vs Hammer: What Is the Difference?


Candlestick patterns reveal how buyers and sellers interact within a single session, often hinting at potential turning points. The hammer and hanging man patterns look identical but tell completely different stories depending on where they appear. This article explains the difference between hammer and hanging man candlesticks, their structure, and how they?re traded.

The Hammer Pattern Explained
A hammer is one of the visual signs that selling pressure is weakening. It forms after a decline and has a small real body near the top of the candle, a long lower shadow, and little to no upper wick. The long shadow shows that sellers drove the price down during the session, but buyers managed to push it back up before the close?a sign that downside momentum may be fading.

For the pattern to count as a hammer, the lower shadow is usually at least twice the height of the body. The candle can be any colour, but a green or bullish hammer often reflects stronger buying interest by the end of the session.

Some traders mistakenly refer to a hammer forming mid-trend as a reversal candlestick, but that?s inaccurate. The hammer only signals potential reversal when it appears after a clear decline.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

AMD Shares Rise Above $250 Ahead of Earnings Report


Today, 4 November, after the close of the main trading session, Advanced Micro Devices (AMD) is set to release its quarterly earnings report and outline its plans for the near future. Market participants remain optimistic, as several key bullish developments last month strengthened confidence in AMD?s role in the AI infrastructure race:

→ AMD shares surged in early October following news of a multibillion-dollar deal with OpenAI.
→ Oracle Cloud chose AMD?s graphics processing units (GPUs) for its new AI supercomputers.
→ IBM announced a breakthrough in quantum computing made possible through the use of AMD chips.

Buoyed by this wave of positive news and high expectations, AMD?s share price climbed above the psychological $250 mark (+61% since early October), reaching a record high.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

The Dollar Index Near a Key High


As shown on the Dollar Index (DXY) chart, the strength of the US currency is currently hovering near an important high reached in August. Market sentiment is being influenced by:

→ the ongoing government shutdown, which has already become the longest in history;
→ traders? assessment of last week?s developments, including the Fed?s interest rate cut, the meeting between the US and Chinese presidents in South Korea, and quarterly earnings reports from major corporations.

Adding to the turbulence is the political factor: according to media reports, Democrats have achieved victories in several local elections. Notably, Zohran Mamdani ? a Muslim candidate from the Democratic Party ? has been elected Mayor of New York for the first time.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice. :smile41:

Euro at the Lower End of the Range, Pound Under Pressure Ahead of the Bank of England Meeting


European currencies remain under pressure for the third consecutive week: the euro is consolidating near the lower boundary of its range, while the pound continues to decline ahead of tomorrow?s Bank of England meeting. The pressure on both pairs persists amid growing uncertainty across global markets. An additional factor is the risk of the ongoing US government shutdown, which could delay the release of key data and influence assessments of the Federal Reserve?s monetary outlook.

Investors are maintaining a cautious stance: the Bank of England meeting, scheduled for tomorrow, could set the tone for the pound in the coming weeks. The market is divided in its expectations ? some participants anticipate that the regulator will keep rates unchanged but adopt a softer tone in its comments, while others expect hints of a possible rate cut later in the year. Any signs of dovish rhetoric could further weigh on the pound, particularly in light of weak domestic data and growing evidence of economic cooling.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.