MovingAverages

📉 Technical Indicators Pointing to Bearish Momentum
A comprehensive analysis of $TRB
$TRB TRB’s technical indicators reveals a predominantly bearish outlook:
$TRB

• Moving Averages: The majority of moving averages signal a ‘Sell’ recommendation. Specifically, 10 out of 15 moving average indicators suggest selling, indicating a downward trend in price movement.
#MovingAverages
#bearishmomentum
• Oscillators: Among oscillators, 2 indicate a ‘Sell’, 5 are ‘Neutral’, and 3 suggest a ‘Buy’. Notably, the Average Directional Index (ADX) stands at 42.24, signifying a strong trend, while the Rate of Change (ROC) is at -26.3618, pointing to declining momentum.

• Relative Strength Index (RSI): The RSI is currently at 39.91, which is below the neutral 50 mark, suggesting that the asset is neither overbought nor oversold but is leaning towards bearish territory.

⸻

📊 Recent Short-Selling Signals

Recent trading signals have highlighted potential short-selling opportunities:

• Entry Point: A suggested short entry at $53.50–$54.10.

• Take-Profit Targets: Sequential targets at $49.91, $46.67, $44.43, $42.48, and $40.14.

• Stop-Loss: Recommended at $63.13 to manage risk.

These targets align with the current bearish indicators and suggest potential profit zones for short positions.

⸻

⚠️ Risk Considerations

While technical indicators and recent signals suggest a bearish trend, it’s essential to consider the following:

• Volatility: Cryptocurrency markets are highly volatile.

• Market Sentiment: Sudden shifts in market sentiment can lead to rapid price reversals.

• External Factors: News events, regulatory changes, or macroeconomic factors can impact price movements unexpectedly.

Introduction
Why is becoming consistently profitable as a trader so hard? Entering a trade in a clear uptrend only to see it fail. What did you miss?
A successful market analysis requires the analyst to clearly define the trend, momentum, and structure of the market. These three pillars, when analyzed in combination, will allow you to trade in favorable conditions. Increasing the likelihood of profitable trades and guarding against overtrading.
The biggest mistake many traders make is using indicators or tools that signal the same thing. Either trend, momentum, or structure — but not all three. For example, some traders combine moving averages with trend lines as their trade setup. Others pair #Bollinger Bands, based on moving averages, with trend lines or, worse, layer multiple #MovingAverages averages or exponential moving averages, focusing too narrowly on trends without considering momentum or market structure. While these tools, categorized as lagging indicators excel at identifying specific pillars, combined they don’t address all three pillars successfully.
This article introduces these three pillars, explains the best tools and indicators, lagging and leading, to identify each pillar and demonstrates how they work together to create high-probability trade opportunities with optimal timing.
I will use #bitcoin current price action to explain.
First Pillar -Trend
This is the easiest term to explain and also the easiest to identify on a chart.
A trend is the general direction of price. An Uptrend is a series of higher highs paired with higher lows. The opposite is true for a Down trend.
Best Tools to use to identify this on a chart
-Trend lines.
Drawing a simple line connecting the low’s or highs will give you a clear picture of how price is behaving, as illustrated below.

-Moving Averages.
For example, when a 20-period Simple Moving Average (SMA) plots above the 50-period SMA, and both are pointing upward, this confirms an uptrend.

Here’s the Catch
Traders fall in to this analysis trap by assigning more meaning and value to these lines than they deserve. Understand that the market can have a rest, this can look like a trend breaking and then continue going higher, as shown below.

At this stage it should be obvious that these lines and indicators are lagging in nature. You first have to wait for the move to occur, before you can get actionable information from them. Most indicators are classified as lagging indicators, like Bollinger bands, moving averages and even exponential moving averages, to name a few. You should only use them to identify the market trend.
Once the trend is clear, the next step is to confirm momentum(second pillar) to time your trade effectively.
Second Pillar — Momentum
Identifying momentum is more challenging, and several theories address this, the most popular being Wyckoff theory, Elliot Wave Theory, and Gann Theory. While it’s impossible to simplify the aforementioned theories into a single paragraph, I’ll focus on identifying momentum using the RSI.
The best indicator to identify momentum
The Relative Strength Index. (RSI) This is a leading indicator indicating what will happen as opposed to a lagging indicator showing what have happened. It’s extremely simple to learn and understand.
The RSI forms pivot points (shown as red circles). This happens when a local high or low is being established. By comparing these pivot points to the closing price, traders can spot divergences. The most critical divergence is the hidden bullish divergence (momentum divergence) in favor of the current trend.
How does Hidden Bullish divergence work? This occurs in an uptrend ,when the price does not make a lower low, but the RSI retraces and makes a lower low. This signals momentum entering the market, absorbing supply (buyers stepping in to drive prices higher), and increasing the likelihood of trend continuation.

Only after identifying the trend (in this case being up) and momentum (having hidden bullish divergence) can a trader apply trade strategies. This leads to the third pillar namely structure. Defining market structure ensures you trade in the right context.
Third Pillar — Structure
Once the trend is established and momentum is confirmed, traders can give structure to the chart and apply their trading setup. Market structure refers to how price behaves, such as consolidating near support or breaking out of a range. Use RSI pivots to identify support and resistance levels within this context.

In the case of the image above, there is a bull trend, because there is no lower low in price. There is bullish momentum as the RSI on each retrace attempt is making a lower low.
Seek long entries at support for as long as the uptrend and bullish momentum conditions are met.
A well-defined market structure prevents overtrading and reduces the risk of trading against the trend, or even worse in a lateral market where price hunts for liquidity (sideways market where price moves to trigger stop orders, causing losses).
By mastering trend, momentum, and structure, you can build high-probability trading setups. Practice these pillars on a demo account with tools like TradingView to boost your consistency and profitability.

$BTC traded at $88,447 on April 22, 2025, securing a market capitalization of $1.75 trillion. Over the past 24 hours, it moved within a tight range of $86,664.84 to $88,874 on a trading volume of $36.36 billion, reflecting consolidation within a prevailing uptrend.
Bitcoin
On the 1-hour chart, bitcoin exhibited a consolidative structure marked by a slight bullish tilt. Price action hovered in a low-volatility band between 87,500 and 88,800, with visible support at 87,200 to 87,400. Resistance capped gains near 88,800 to 89,000. Despite waning volume suggesting a temporary pause in momentum, the absence of aggressive selling implies that market participants largely hold positions. Entry signals are favored either on a clean breakout above 88,900 or a confirmed rebound from 87,400 with accompanying volume.

Btc/USD 1H chart on April 22.
The 4-hour chart indicated a more resolute bullish trajectory, highlighted by a resumption of upward momentum following consolidation. A breakout near 85,000 was supported by a volume surge, validating the move higher. Price structure continued to form higher lows and highs, with buyers controlling short-term swings. The immediate resistance lies in the 89,500 to 90,000 zone, while any dip toward 87,000 to 87,500 is seen as an opportunity for accumulation within the ongoing trend.

/USD 4H chart on April 22.
Bitcoin‘s daily chart further reinforced a medium-term bullish bias. A sharp V-shaped recovery from a recent low of 74,434 has propelled prices into the current range, with full-bodied green candles denoting strong buyer conviction. Momentum has reclaimed prior resistance levels in the 84,000 to 85,000 zone, which now serve as new support. Despite moderate volume, the technical pattern supports continued upside, though traders should be cautious of the psychological barrier near 89,000 to 90,000, where prior rejections occurred.

$BTC /USD 1D chart on April 22.
The oscillators largely conveyed neutrality. The relative strength index (RSI) stood at 60, the Stochastic at 93, and the commodity channel index (CCI) at 153—all signaling a market neither overbought nor oversold. The average directional index (ADX) at 15 indicated a weak trend strength, while the Awesome oscillator showed a modest positive bias. The momentum indicator, however, flashed a sell at 3,268, possibly pointing to waning short-term velocity. In contrast, the moving average convergence divergence (MACD) posted a buy signal at 696, suggesting underlying bullish sentiment.
#MovingAverages remained decisively bullish across all durations except for the 100-period simple moving average (SMA), which issued a negative signal at 90,834—above current price levels. All exponential moving averages (EMA) from the 10 to 200-period range, along with nearly all corresponding simple moving averages, registered bullish signals. This alignment indicates strong trend support and highlights the strength of the ongoing uptrend, especially with the 200-period simple moving average acting as dynamic support around 88,358.
Bull Verdict:
Bitcoin continues to exhibit strong structural integrity across multiple timeframes, with bullish signals from nearly all exponential and simple moving averages. The breakout momentum on the 4-hour chart, combined with the supportive daily pattern and buy signal from the moving average convergence divergence (MACD), reinforces the likelihood of further upside. As long as bitcoin holds above the 87,000 threshold, a push toward the psychological 90,000 level appears within reach.
Bear Verdict:
Despite the prevailing uptrend, caution is warranted as momentum shows signs of cooling. The sell signal from the momentum oscillator and overextended stochastic readings may foreshadow a short-term pullback. Should bitcoin break below the key 87,000 support level with significant volume, it may invalidate the bullish setup and expose the price to a deeper retracement toward the 84,000–85,000 support zone.
#cryptouniverseofficial
#artical

Hammer
Candlestick:
What It Is and
How Investors
Use It

Table of Contents
Technical AnalysisTechnical Analysis Basic Education
Hammer
Candlestick:
What It Is
and
How Investors
Use It
By
Cedric Thompson
Updated March 14, 2025
Fact checked by
Stella Osoba

 
Definition
The hammer is a bullish reversal candlestick pattern characterized by a
small body near the top, a long lower wick, and little to no upper shadow.
It signals a shift from selling to buying pressure.
If you're a swing trader looking for a long entry at the end of downturn, a
hammer offers valuable information, signaling a short-term shift from
bearish to bullish momentum that may itself mark a turning point.
The hammer is a single bullish candlestick with a small real body
near the top, a long lower shadow at least twice the body's length, and
minimal or no upper shadow.
It is most effective after a significant downturn or countertrend pullback
and when confirmed with another bullish candlestick, technical
indicators, or established support levels.
Key Takeaways
The hammer candlestick is a bullish reversal pattern with a small body and long lower shadow.It is most effective when appearing after a downtrend and confirmed by subsequent candlesticks or technical indicators.Trading strategies should include clear entry points, a stop-loss order, and profit targets.The pattern's reliability increases when it appears at support or Fibonacci levels.Always use the hammer candlestick in conjunction with other technical analysis tools.Understanding Hammer CandlesticksThe hammer is one of the easiest, most intuitive candlesticks to recognize because, well, it looks something like a hammer. It has three components:
A small real body located near the top
A long lower wick that is at least twice the body's length
A tiny upper shadow or no upper shadow
The unique shape tells traders that even though prices initially dropped,
buyers stepped into reverse the decline, pushing the closing price up
to near the opening price.
This signals a potential shift from bearish to bullish sentiment
momentum.

A hammer with a closing price higher than the opening price is an even
stronger bullish signal, giving traders even more confidence.
It's still a bullish signal if the closing price remains below the open, but the
failure to push the close higher is a sign of residual selling pressure,
prompting most traders to proceed with more caution and seek additional
confirmation.

Hammers are most reliable after a significant downtrend, especially if
they occur at an area of established support, whether via previous price
action or major moving averages.

How to Trade the Hammer Candlestick
There are several basic steps to effectively trading the hammer:

Step 1: Pattern Identification

Identify the hammer. Some charting software offers candlestick pattern
analysis, including the hammer.
If the trader is eyeballing, they would need to confirm the small body near
the candle's high, the long lower shadow and a minimal or non-existent
upper shadow.

Step 2: Confirm the Pattern

Good traders wait for confirmation, most often in the form of a bullish
candle that shortly follows the hammer and closes above the high of
the hammer. Additionally, increased volume on the confirmation
candlestick enhances reliability. Technical indicators such as the
Relative Strength Index (RSI) also offer useful confirmation.

Step 3: Trade Entry

More aggressive traders may enter at the close of the confirmation
candlestick if it closes above the hammer's high.
Others may enter at the open of the day following the confirmation candle.

Step 4: Stop-Loss Entry

The most common approach is to place the stop-loss order just under
the hammer's low—if the price falls below the hammer's low, the pattern
has definitely failed.

Step 5: Profit Targeting

Traders usually set profit targets using nearby resistance levels, moving
averages, Fibonacci retracements, or pivot points. But before entering the
trade, most traders would want to be sure the market has enough room to
run to achieve their minimum risk-reward ratio before hitting resistance
levels or other areas where profit-taking makes sense.

Tips for Trading with the Hammer Candlestick
Traders keep these points in mind when using the hammer candlestick:

Look for Longer Shadows:
Longer shadows signal stronger buyer strength, as buyers aggressively
reversed prices from intra-period lows. The lower shadow should be at
least twice the length of the real body, but on the most bullish hammers, they
can be three to five times longer.
Confide in Confluence:
A hammer appearing near major support levels, trendlines, or
Fibonacci retracement zones dramatically enhances reliability.
Such confluence indicates multiple traders recognize the level as a buying
zone, strengthening the reversal signal.
Technical Analysis Combos:
For confirmation, use indicators such as the RSI, Moving Average
#RSI
#MovingAverages
Convergence Divergence (MACD), or moving averages.
#MACD
Volume Analysis: Increased trading volume accompanying the hammer or
confirmation candle indicates strong institutional buying support, validating
the reversal.
Common Mistakes and How to Avoid Them
Below are some common pitfalls and ways to avoid them.

Pitfall Mitigation Technique
Trading Without Confirmation
Wait for a subsequent bullish candlestick that closes above the
hammer's high.
This confirms genuine buyer strength.
Ignoring Market Context Analyze overall market trend, support and
resistance, and momentum indicators. A hammer is most reliable at key
support or Fibonacci levels.
Overlooking Volume Prioritize hammers accompanied by higher-
than-average volume, suggesting higher potential for a bullish reversal.
Improper Stop-Loss Placement
The most common stop-loss is below the hammer's low, providing enough
room to avoid stop hunters and normal volatility.
Relying On the Hammer Alone
To confirm the signal, use the RSI, MACD, moving averages, or chart
patterns.
Example of Hammer Candlestick Pattern in Action
Toward the end of 2022, a currency trader closely observing the Canadian
dollar-Japanese yen's (CAD/JPY) downtrend on the daily chart spots a
bullish divergence forming on the RSI, suggesting weakening bearish
momentum.
Example of Hammer Candlestick Pattern in Action
Toward the end of 2022, a currency trader closely observing the Canadian
dollar-Japanese yen's (CAD/JPY) downtrend on the daily chart spots a
bullish divergence forming on the RSI, suggesting weakening bearish
momentum.

Patiently waiting for a clear sign of a reversal, the trader sees first an
inverted hammer and then a hammer. These are confirmed by a bullish
candle in the next period, making this a strong buy signal.
The trader enters a long position at the close of the
confirmation candle, placing the stop-loss just below the low of the hammer
and aiming for a risk-to-reward ratio of 1 to 2.

The pair rises again on the day after the confirmation bar, trades sideways
for a while, then moves higher again, hitting the trader's profit target.

The Bottom Line
The hammer candlestick helps swing traders enter long positions after
downtrends while minimizing the risk of "catching a falling knife."
That's because the hammer pattern reveals a potential shift in buying
pressure and the balance of power between bears and bulls.
Traders look for confirmation from subsequent bullish candles and higher
volume, ideally supported by other technical analysis indicators like the
RSI or MACD, pivot points, or Fibonacci levels.
By combining the hammer pattern with disciplined trading, traders can
effectively manage risk, avoid common pitfalls, and improve their
results when looking to enter bullish reversals.
#Write2Earn

🔷 Analysis indicators explanation series 📊
Number 3️⃣
Name: Moving Average Indicator
Work: It is used in financial market analysis and technical analysis to determine the general trend of the market.
Category: Trend Indicators.

∆ Explanation of the {Moving Average} indicator:
It is a technical indicator that shows average prices for a specific period of time, which helps reduce volatility and determine the general direction of the market.