👋 Hello everyone!

Last week we discussed candlestick patterns — Hammers, Dojis, Bearish and Bullish Engulfing (check it out if you missed it), and also the Stopping Action signal from the Smart Money strategy. As you may have noticed, they are all closely related to the histogram of vertical volumes, which I want to talk about in a series of upcoming lessons. We will also add the term 'Market Strength' to our arsenal today and look at its real examples on the chart, involving candlestick patterns: 'Hammer' and 'Doji' - for better clarity and understanding of the material. Let's go!🚀

📊 Vertical volumes are the histogram at the bottom of the chart.

Each bar = volume of transactions for the candle.

👉 To understand if the volume is high, we compare it to:

• previous bars (background) (see slide 2),

• with price reaction.

If you have difficulties determining the size of volumes relative to the background, you can include Volume MA — the average line for volumes, in the 'Style' section. On the slide, this is the blue line that runs along the volume histogram.

🔥 What does market strength look like in a downtrend?

This is the moment when the market is falling, but the price stops making new lows, even though volumes are increasing.

👉 Simply put: large sales are being bought back → large players are entering.

📌 Strength Checklist:

• Do you see high volume (above average)? ✅

• Is the price not falling as much as before? ✅

• Does the candle close at the upper part, often with a long lower shadow (Hammer) or in the form of (Doji)? ✅

Market reversal through a Hammer on high volumes relative to the background

Market reversal through a Doji on very high volumes relative to the background

👌If at least 2–3 points match → strength has manifested in the market 💪

📌The 'Stopping Action' signal works on the same principle that I talked about last week - check it out if you missed it.

❗️Important: Do not trade individual signals in isolation. They are shown to complement your trading strategy and expand your analysis capabilities.

👍 Like it if you found it useful and want a detailed analysis of the 'Market Weakness' on the chart, using signals like "No Demand" and "Bag Holders" that you can immediately incorporate into your trading strategy.

💬 Join in creating the material 💪 Write your opinion about the presentation format in the comments — it's important for me to understand if I am conveying the essence.

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$BTC