Series: Main reversal candlesticks for bullish trends.
Episode 01/10: The HAMMER
The Hammer is the most famous pattern, but do you know what makes a good hammer??
Observe the candlestick marked in blue in the image.
The cryptocurrency was in a downward trend until this hammer appeared.
To be considered a good Hammer pattern in candlesticks, the lower shadow must be at least 2 times larger than the body of the candle, that is, a minimum ratio of 1:2 (body:shadow). This ratio indicates strong rejection of lower prices, with buyers dominating after testing support. An ideal ratio would be the lower shadow ≥ 2x or 3x the size of the candlestick body; the larger, the more bullish the signal.
The body can be small, it can be green or red, positioned at the top of the candle.
As for the upper shadow; ideally, it should be absent or very short, something like < 1/3 of the size of the body.
Do not use this in isolation to define your entries. Learn as much as possible, master the charts and other theories. FLY!
#candlestick
#CandlestickAnalysis
Episode 01/10: The HAMMER
The Hammer is the most famous pattern, but do you know what makes a good hammer??
Observe the candlestick marked in blue in the image.
The cryptocurrency was in a downward trend until this hammer appeared.
To be considered a good Hammer pattern in candlesticks, the lower shadow must be at least 2 times larger than the body of the candle, that is, a minimum ratio of 1:2 (body:shadow). This ratio indicates strong rejection of lower prices, with buyers dominating after testing support. An ideal ratio would be the lower shadow ≥ 2x or 3x the size of the candlestick body; the larger, the more bullish the signal.
The body can be small, it can be green or red, positioned at the top of the candle.
As for the upper shadow; ideally, it should be absent or very short, something like < 1/3 of the size of the body.
Do not use this in isolation to define your entries. Learn as much as possible, master the charts and other theories. FLY!
#candlestick
#CandlestickAnalysis