#Trump100Days
Learn the basic concepts in technical trading:
1. Hammer (Hammer Pattern): A candlestick pattern 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 pre-determined 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:
- Small body at the top, long lower shadow (weakness of sellers and strength of buyers).
- Appears after a downtrend.
🎯 Determining the entry point (ENTRY):
- Wait for confirmation of the signal (such as a bullish candle following the hammer).
- Enter upon breaking a short-term resistance.
🛑 Risk management (STOPLOSS):
- Place the "stop loss" below the hammer's shadow.
- Calculate the position size so that your loss does not exceed 2% of the capital.