🔥 BEGINNER
#TRADERS — THIS ONE’S A MUST KNOW 🔥
The Hammer Reversal (Candlesticks)
A single candle that can tell you when sellers are running out of steam. Simple shape, huge meaning — but only if it shows up in the right spot.
Hammer Must-Haves:
✔ Appears after a downtrend
✔ Small body near the top of the range
✔ Long lower wick (2–3x the body)
✔ Little to no upper wick
Miss one? It’s just noise.
Market Signal:
Early session: sellers dominate, panic selling, stops hit.
Then buyers jump in. Shorts cover. Price recovers.
✅ Long lower wick = rejection
✅ Small body = control shifting
Context is everything:
Hammer in the middle of a range or low-volume chop? Ignore it.
Hammer at the top? That’s a Hanging Man, not a reversal.
Trading the Hammer:
Conservative: wait for next candle to close above Hammer high
Aggressive: enter on Hammer close if confluence is strong
Stop: below Hammer low
Targets: prior swing high or measured move
No predictions. Just react to what the market tells you.
The edge comes from location + context, not the shape alone.
This is one page from my Trading Encyclopaedia — real foundations, no hype: candlesticks, structure, reversals, practical execution. Trade Long Now 👇$XAG
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