$DOT For those who are going to stay in the trade, I came to bring a tip to clear your mind.
To confirm the inverted hammer signal as a possible reversal or correction, the next candle ideally needs to show that the market was unable to sustain the rise. Here are the confirmation scenarios:
1. Next Bearish Candle: The next candle being bearish and closing below the body of the inverted hammer is the strongest confirmation signal for a reversal or correction. This indicates that selling pressure is gaining strength and that the uptrend may be weakening.
2. Weak Bullish Candle: If the next candle is bullish but fails to overcome the high of the inverted hammer, this also suggests weakness in the upward movement. In this case, the market tried to resume the rise but failed to overcome the resistance represented by the inverted hammer, which may signal an imminent correction.
In short, to validate the inverted hammer as a possible reversal signal, you want to see signs of weakness in the sequence — either with a bearish candle or with a bullish candle that fails to surpass the hammer's high.
On the 1H chart, it has already formed a weak candle after the inverted hammer. On the 4H chart, you have to wait for it to close.
This is just a graphic figure; what really counts is the market sentiment, which is currently on a fierce rise. So if you want to continue trading, it will also be smart on your part. Because it could just be a possible correction. At the moment, the price is undecided at 5.25 dollars with little variation downwards or upwards. Watch the next candles and make your short-term choice.
If you are thinking long-term, Dot is oversold, it still has a lot to go up.
Always be protected by the StopLimit.
Target for #DOT : 8 dollars - 10 dollars
Have a good Sunday everyone.
#Polkadot up!!! Surf this wave.
