📊 Market Analysis : Aave
This morning, we observed a strong market push that resulted in the formation of a hammer candlestick 🛠️. This immediately caught my attention because it is unusual for the market to form a daily hammer so early in the session. 🤔 The question arises—what is happening?
📉 Analyzing the Chart:
Looking at the chart below, we can see that a hammer was also formed on the 12-hour time frame, and it is a red hammer (closing price is below the opening price). Some traders believe that a green hammer (closing price above the open) is more bullish. However, I have also witnessed bearish hammers changing the trend direction. This suggests that the overall market structure plays a significant role in price action, not just the hammer formation itself.
💡 Key Question:
How will the next 12-hour candle 🕒 close? If it closes significantly below the hammer’s close, the hammer's strength may be weakened, reducing its potential impact on the market.
🔎 Final Thoughts:
The market always gives clues about its next move. The best approach? Trade what you see! 📈👀
🍽️ Now, it's time for lunch! 😋
