Let's talk about the "hammer" - one of the most popular and recognizable patterns in trading.
What is a "hammer" pattern? 🛠
The "hammer" pattern is a candle with a long lower shadow and a small body, which is formed at the support level. The upper shadow is either absent or very short. Such a candle is a sign that the bears tried to push the price down, but the bulls took control of the situation and pushed the asset up. This indicates a possible reversal of the downtrend.
How to effectively use the "hammer" in trading? 📊
Buying at the close of the candle: This method involves opening a deal at the moment the "hammer" candle closes. However, there is a risk that the price may fall again.
Buying on the breakout of the upper border: A less risky option is to buy after the breakout of the upper border of the candle. Here, the probability of asset growth is much higher.
Remember that the "hammer" is more reliable at support levels, and do not forget about capital management. More useful patterns at the moment channel t.me/kornevinvest
What is a "hammer" pattern? 🛠
The "hammer" pattern is a candle with a long lower shadow and a small body, which is formed at the support level. The upper shadow is either absent or very short. Such a candle is a sign that the bears tried to push the price down, but the bulls took control of the situation and pushed the asset up. This indicates a possible reversal of the downtrend.
How to effectively use the "hammer" in trading? 📊
Buying at the close of the candle: This method involves opening a deal at the moment the "hammer" candle closes. However, there is a risk that the price may fall again.
Buying on the breakout of the upper border: A less risky option is to buy after the breakout of the upper border of the candle. Here, the probability of asset growth is much higher.
Remember that the "hammer" is more reliable at support levels, and do not forget about capital management. More useful patterns at the moment channel t.me/kornevinvest