What Is A Hammer In Candlesticks And What Does It Signify?
ContentsHammer Vs Inverted Hammer PatternDifferences With Other PatternsBitcoin Btc Dominance: How It Changes The Way You Trade CryptoBest Time Management Software In 2022Strategy 2: Support If the wick is exceptionally long as in the case of ADBE above where the wick is 4 to 5 times longer than the body, then it looks more like a pin rather than hammer. The lack of a significant lower wick indicates that bears were unable to push price much lower than the candle’s opening price. In a situation like this, it’s best to look for additional confluence from other indicators and candlestick developments over the next few bars. Hammers are most effective when at least three or more declining candles precede them. A declining candle is defined as one that closes lower than…
