Just wanted to share something Iāve been studying lately thatās really changed the way I look at charts ā especially when it comes to meme coins like $PEPE .
Iāve been digging into Japanese candlestick patterns, and one that really stood out is the hammer candle. Itās a powerful little signal that can show up when the marketās been bleeding, and it might be the first sign of a reversal.
So, whatās a hammer candl
It has a small body ā meaning the open and close prices are close.
It has a long lower wick ā at least twice the size of the body.
Thereās usually no upper wick, or itās very small.
It basically tells you this:
During that session, sellers pushed the price way down, but buyers came in strong and brought it right back up near the opening. That shift can signal a potential change in sentiment from bearish to bullish.
š§ Why does this matter?
Iāve started paying close attention to this when a coin like $PEPE is in a clear downtrend. If I spot a hammer at the bottom, itās a sign to slow down and reassess. It might mean a bounce is coming ā but I always wait for confirmation on the next candle.
This pattern alone isnāt a magic entry signal. I still check volume, support levels, and other indicators. But in the right context, the hammer candle can be a super helpful tool in your trading setup.
š” Final Thoughts
Itās little things like this that can make a big difference in trading. I used to overlook these details, but now that I know what to watch for, Iām seeing opportunities I wouldāve missed before.
If youāre trading $PEPE or any alt, and you spot that hammer forming ā donāt ignore it. Just be smart and confirm before jumping in.
Let me know if you want a visual example ā Iāve started marking these on my charts and the results are eye-opening.
