$OMNI
Inverted Hammer Red and its interpretation is as follows:
What the candle means:
- Long upper shadow* = Strong attempt to rise but the price was pushed down.
- Small body close to the low = Selling pressure at the end of the candle
- Red color = Closing lower than opening which increases the likelihood of a correction.
Technical Reading
- Appears after a violent rise → Indicates weakness in upward momentum and possibly the beginning of a temporary correction or profit-taking.
- If not followed by a strong green candle confirming the continuation of the rise, the price may retreat to test supports such as
- EMA7 (currently at 5.62)
- Or the level 5.00 - 5.20 as a potential pivot area.
Decision
- Do not consider it a confirmed sell signal by itself.
- Wait for confirmation from the next candle:
- If a long green candle = continuation of the rise (beginning of the second wave)
The second wave is usually stronger than the first wave
- If another red candle = Confirmation of correction and it is preferable to wait for support