Learn the basic concepts in technical trading: #BTC md#SO #BinanceAlphaAlert
1. Hammer (Hammer Pattern): A candlestick pattern indicating a potential reversal in a downtrend (buy signal).
2. ENTRY:
The optimal timing to open a trade based on the confirmation of the "Hammer" signal.
3. STOPLOSS:
A predetermined level to automatically close the trade if the market moves against expectations, to protect capital.
Message: Combining technical analysis and risk management is the key to successful trading.
📊 How to benefit from the "Hammer" pattern in trading?
The "Hammer" pattern is a strong signal for trend reversal, but its success depends on applying a clear strategy:
🔨 Recognizing the pattern:
- A small body at the top, a long lower shadow (weakness of sellers and strength of buyers).
- Appears after a downtrend.
🎯 Identifying the ENTRY point:
- Wait for confirmation of the signal (like a bullish candle following the hammer).
- Enter upon breaking short-term resistance.
🛑 Risk management (STOPLOSS):
- Place the "stop loss" below the hammer's shadow.
- Calculate the position size so that your loss does not exceed 2% of capital.
💡 Remember:
Trading without a stop-loss plan is like driving a car without brakes!
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