⚪Previous Direction⚪
◀️On the left, we see consecutive red candles (strong downward trend)✔️.
◀️This is very important, as the hammer often appears at the end of a downward trend.✔️
⚪Hammer Appearance⚪
◀️At the bottom of the chart,🔻 a candle with a very long lower shadow and a small body appeared.✔️
◀️This means that sellers pushed the price down🔻, but buyers came back and raised it close to the opening price.✔️
◀️Result🟰: Potential reversal signal.✔️
⚪Entry and Exit Areas⚪
◀️Entry:🟰 After confirming the hammer (for example, with the appearance of a green candle afterwards).✔️
◀️Stoploss🟰: Below the hammer's tail (as breaking this level invalidates the pattern).✔️
⚪Expected Outcome⚪
◀️After buyers enter🔺, the trend begins to reverse upwards (as on the right side of the image🟰: rise with consecutive green candles).✔️
🟢Not an investment advice 🟢
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