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Inverted Hammer Candlestick
1. What is candlestick ? A candle (or candlestick) in the stock market is a visual way to show how a stock’s price moved during a specific time period. What a single candle shows Each candlestick gives you 4 important prices: Structure of a candlestick A candle has 2 main parts: 2.What is inverted hammer. The Inverted Hammer candlestick pattern is a bullish reversal pattern that typically forms at the bottom of a downtrend, indicating a potential reversal in trend. It resembles the Hammer pattern but with the shadows reversed. 3. Characteristics of an Inverted Hammer Candlestick Interpretation: 4. Psychology behind inverted hammer Phase 1: Fear Dominates (Opening) Phase 2:…
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What Is a Candlestick Chart?
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Hammer candlestick
The Hammer candlestick forms when the open, high, and close are nearly the same, with a long lower shadow signaling a bullish rejection by buyers aiming to drive the market higher. The hammer is a reversal candlestick pattern when it occurs at the bottom of a downtrend . Characteristics of a Hammer Candlestick: Interpretation: Example As you can see the market was trending down, the formation of the hammer (pin bar) was a significant reversal pattern.The long shadow represents the high buying pressure from this point. Sellers was trying to push the market lower, but in that level the buying power was more powerful than the selling pressure which results…
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What Is a Candlestick Chart?