Learn the basic concepts in technical trading:
1. Hammer (Hammer Pattern): A candlestick model indicating a potential reversal in a downtrend (buy signal).
2. ENTRY (Entry Point):
The optimal timing to open a trade based on confirmation of the "Hammer" signal.
3. STOPLOSS (Stop Loss):
A predefined level to automatically close the trade if the market moves against expectations, to protect capital.
Message: Combining technical analysis and risk management is the key to successful trading.
📊 How to benefit from the "Hammer" pattern in trading?
The "Hammer" pattern is a strong signal for trend reversal, but its success depends on applying a clear strategy:
🔨 Recognizing the pattern:
- A small body at the top, a long lower shadow (weak sellers and strong buyers).
- Appears after a downtrend.
🎯 Determining the entry point (ENTRY):
- Wait for confirmation of the signal (like a bullish candle following the hammer).
- Enter when breaking short-term resistance.
🛑 Managing risk (STOPLOSS):
- Place the "Stop Loss" below the hammer's shadow.
- Calculate the trade size so that your loss does not exceed 2% of capital.
💡 Remember:
Trading without a stop loss plan is like driving a car without brakes!
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