⚠️Common mistakes: Relying on news and recommendations (which may be fake or incorrect, intentionally or unintentionally) and neglecting technical analysis

1. A hammer candle is characterized by a relatively long lower wick, but it has no upper shadow. This means that the closing price is equal to or very close to the high of the candle, so the upper shadow does not appear. Meanwhile, the larger the lower shadow, the better it is for the candle's validity. Also, the opening price and closing price should not be equal, and it is preferable for the closing price to be higher than the opening price, as shown in the following image.

2. An inverted hammer candle is characterized by an invisible lower wick, while its upper wick is relatively large. It is preferable for the closing price to be higher than the opening price, as shown in the image of the inverted hammer candle. It is preferable for this candle to appear after a period of price decline. If this candle appears after a noticeable upward price movement, it may not succeed; on the contrary, it may be a bearish candle pattern.

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