A hammer at the bottom and a shooting star at the top look almost identical — and they mean the exact opposite.
1. A hammer has a small body at the top and a long lower wick. It appears after a fall, when buyers pushed the price back up from the low.
2. A shooting star has a small body at the bottom and a long upper wick. It appears after a rise, when sellers pushed the price back down from the high.
3. The shape alone means nothing — the location is the signal. A hammer at the top of a rally is just a candle with a long wick.
4. Wait for the next candle to close in the direction of the reversal before you act. One candle is a warning, two candles are a signal.
5. Bigger wicks carry more weight. A wick twice the size of the body shows a stronger rejection than a short one.
6. Check the volume behind it. A reversal candle with strong volume tells you real money moved, not just a quiet wick.
The rule: Read the candle where it stands, never the candle on its own.
Which reversal candle have you spotted on a Bitcoin chart — a hammer or a shooting star?
$BTC $ETH #CryptoForBeginners #BinanceSquare #Crypto #CryptoTrading #Bitcoin
1. A hammer has a small body at the top and a long lower wick. It appears after a fall, when buyers pushed the price back up from the low.
2. A shooting star has a small body at the bottom and a long upper wick. It appears after a rise, when sellers pushed the price back down from the high.
3. The shape alone means nothing — the location is the signal. A hammer at the top of a rally is just a candle with a long wick.
4. Wait for the next candle to close in the direction of the reversal before you act. One candle is a warning, two candles are a signal.
5. Bigger wicks carry more weight. A wick twice the size of the body shows a stronger rejection than a short one.
6. Check the volume behind it. A reversal candle with strong volume tells you real money moved, not just a quiet wick.
The rule: Read the candle where it stands, never the candle on its own.
Which reversal candle have you spotted on a Bitcoin chart — a hammer or a shooting star?
$BTC $ETH #CryptoForBeginners #BinanceSquare #Crypto #CryptoTrading #Bitcoin
