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A hammer candle is a bullish candlestick pattern with a small body and long lower shadow, signaling that buyers may be gaining strength after a downtrend.
How to Recognize a Hammer Candle
Small real body
→ Price closes near where it opened.
Long lower shadow (wick)
→ The lower wick should be at least 2x the size of the body.
Little or no upper shadow
Appears after a downtrend
→ It’s meaningful only if it comes after falling prices.
What Does It Mean?
Sellers tried to push prices lower → the long lower wick shows this.
Buyers regained control → price closes back near the top of the candle.
Possible signal that the downtrend may be ending and a reversal upward could begin.
#trade #Binance #HammerCandle
How to Recognize a Hammer Candle
Small real body
→ Price closes near where it opened.
Long lower shadow (wick)
→ The lower wick should be at least 2x the size of the body.
Little or no upper shadow
Appears after a downtrend
→ It’s meaningful only if it comes after falling prices.
What Does It Mean?
Sellers tried to push prices lower → the long lower wick shows this.
Buyers regained control → price closes back near the top of the candle.
Possible signal that the downtrend may be ending and a reversal upward could begin.
#trade #Binance #HammerCandle
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