In this video at the live edge we see a very clear signal on the GBP/JPY chart with a surge in volume on a classic hammer and following the price waterfall, so strong buying. But, it’s so easy to jump in too quickly on such a good signal. Patience is always required. V shaped rallies do happen where the market or pair reverses immediately but these are rare. The more usual price action is as we see here with congestion following before the reversal in the primary trend develops. Whilst this is a one minute chart, exactly the same principles apply to any other timeframe.